Sri Lanka's rupee weakened in 2012 and tourist arrivals have also been strong, though some 5-star resorts are saying that occupancy is not high.
The hotel is positioning itself in the premium market becoming a member of the 'Small Luxury Hotels' network.
The hotel said revenues rose 29 percent to 210 million rupees in the half year and cost of sales rose at a slower 7 percent to 54.7 million rupees allowing gross profits to grow 39 percent to 155 million rupees.
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Administration costs rose 21 percent to 109 million rupees. Finance costs at 25 million rupees were flat, and there was 4.3 million rupees of finance income.
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The cashflow statements showed a 6.
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2 million gain on asset disposals and 4.2 million rupee exchange gains.