The hotel was damaged during the tsunami and now has been reconstructed, with 35 air-conditioned rooms. Former Tourism Minister, P.B.G Kalugalle, opened the hotel, in 1974.
Director, Nilaveli Beach hotel, Gerard Ondaatjie said that the management hopes to introduce air-conditioned restaurant and many other amenities in the future.
Commenting on the global economic downturn he said that it has affected the industry.
Due to this fact the buying power of Europeans and British’s have come down and this has resulted in them restricting their travel affecting Sri Lanka as well”, he said.
“In addition the recent incidents in Mumbai and Thailand too would have a negative impact on the local tourism industry,” he said.
Today the hotel offers a flood lit tennis court, swimming pool, diving and excursions to many places of historic interests in the area.
The hotel is also a popular venue among NGO workers.