Thona Bay, a new luxury hotel and residential apartment project on Sri Lanka's east coast, is on a beautiful stretch of coastline previously inaccessible because of the war. Situated 145km from the new airport at Hambantota, and 8km north of Batticaloa, the gated development offers one- or two-bedroom, five-star apartments fronting over 2kms of white sandy beach and with magnificent views of the Indian Ocean. Agents are citing up to 20 per cent annual appreciation, and rental returns from 179 per cent. There is no capital gains tax, and only 1 per cent stamp duty. Details from Sue Fitzgerald at Property Perfect www.propertyperfectsolutions.com