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Anura Kumara Dissanayake sworn in as Sri Lanka’s president

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Anura Kumara Dissanayake sworn in as Sri Lanka's president
Getty Images Sri Lanka's new president Anura Kumara Dissanayake takes oath as president of Sri Lanka in Colombo, Sri Lanka on September 23, 2024. Getty Images

Anura Kumara Dissanayake said it was important to establish a new political culture in Sri Lanka

Sri Lanka’s new president Anura Kumara Dissanayake has been sworn into office, promising “clean” politics as the country recovers from its worst economic crisis.

The left-leaning Dissanayake has cast himself as a disruptor of the status quo, and analysts see his victory as a rejection of corruption and cronyism that has long plagued the country.

Saturday’s election was the first since 2022, when discontent over the economy fuelled mass protests and chased former president Gotabaya Rajapaksa from power.

“We need to establish a new clean political culture,” he said. “I commit to achieving this. We will do the utmost to win back the people’s respect and trust in the political system.”

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The 55-year-old, who is familiarly known as AKD, told Sri Lankans that “democracy doesn’t end with voting in a leader”.

“We need to strengthen democracy. I pledge to do my utmost to safeguard democracy,” he said.

“I have said before that I am not a magician – I am an ordinary citizen. There are things I know and don’t know. My aim is to gather those with the knowledge and skills to help lift this country.”

Dissanayake received a Buddhist blessing at the end of his speech. Representatives of Sri Lanka’s other main religions – Islam, Hinduism and Christianity – were also present during the oath-taking, highlighting the new president’s emphasis on diversity.

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In a statement on the eve of the ceremony, Dissanayake said the “unity of Sinhalese, Tamils, Muslims and all Sri Lankans is the bedrock of this new beginning”.

During the campaign, Dissanayake promised voters good governance and tough anti-corruption measures.

He has promised to develop Sri Lanka’s manufacturing, agriculture and IT sectors. He has also committed to continuing the deal struck with the International Monetary Fund (IMF) to bail Sri Lanka out of the economic crisis while reducing the impact of its austerity measures on the country’s poorest.

Sri Lankan Prime Minister Dinesh Gunawardena resigned before Dissanayake was sworn in, paving the way for the dissolution of parliament.

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In an earlier interview with BBC Sinhala, Dissanayake signalled that he would dissolve parliament soon after being elected.

“There is no point continuing with a parliament that is not in line with what the people want,” he said at the time.

Dissanayake won after the counting stretched into a second round on Sunday, as no candidate was able to win more than 50% of the total votes in the first round.

Once the second and third-choice votes for president had been tallied, the Election Commission said Dissanayake had won with a total of 5,740,179 votes.

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Opposition leader Sajith Premadasa came in second at 4,530,902. Outgoing President Ranil Wickremesinghe got 2,299,767 during the first round of counting and was excluded from the second round.

EPA Supporters of newly elected President Anura Kumara Dissanayake cheer near the election commission after the announcement of his victory in the presidential election, in Colombo, Sri Lanka, 22 September 2024.EPA

Dissanayake’s supporters took to the streets Sunday night to celebrate his win

Wickremesinghe congratulated his successor, saying: “With much love and respect for this beloved nation, I hand over its future to the new president”.

Until this weekend’s vote, all of Sri Lanka’s eight presidential elections since 1982 had seen the winner emerge during the first round of counting. This poll has been described as one of the closest in the country’s history.

Dissanayake’s anti-corruption platform resonated strongly with voters who have been clamouring for systematic change since the crisis.

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This enabled him to overcome trepidation over the violent past of his political party, the Marxist Janatha Vimukthi Peramuna (JVP), which carried out two armed insurrections against the Sri Lankan state in the 1970s and 80s.

Dissanayake’s alliance, the National People’s Power – of which the JVP is a part – rose to prominence during the 2022 protests, known as the Aragalaya – Sinhala for struggle.

Dissanayake has also sought to moderate the hard-left stance of his party in more recent years.

Economic meltdown

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The country’s new president will be faced with the twin tasks of reviving the economy and lifting millions from crushing poverty.

An economic meltdown fuelled the Aragalaya uprising that unseated Rajapaksa from the presidential palace in 2022.

At that time, Sri Lanka’s foreign currency reserves had dried up, leaving the country unable to import essentials such as fuel. Public debt ballooned to $83bn while inflation soared to 70%.

This made basics such as food and medicine unaffordable to ordinary people.

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The country’s economic misery has been blamed on major policy errors, weak exports and years of under-taxation. This was exacerbated by the Covid-19 pandemic, which choked tourism, a key economic driver.

Many people have also blamed corruption and mismanagement, however, stoking anger against Rajapaksa and his family, who collectively ruled Sri Lanka for more than 10 years.

EPA Hand cart pullers work at a wholesale market in the commercial hub of Colombo, Sri Lanka, 13 September 2024. EPA

Sri Lanka’s country’s economic misery has been blamed on major policy errors, weak exports and years of under-taxation.

“The most serious challenge is how to restore this economy,” Dr Athulasiri Samarakoon, a political scientist at the Open University of Sri Lanka, told the BBC Sinhala Service.

During his term Wickremesinghe secured a $2.9bn lifeline from the International Monetary Fund (IMF), which is crucial to opening additional funding channels but comes with strict economic and governance policy reforms.

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Sri Lanka is restructuring the terms of its debt payments with foreign and domestic lenders, as mandated by the IMF. The main focus has been the country’s $36bn worth of foreign debt, of which $7bn is owed to China, its largest bilateral creditor.

Like Dissanayake, Premadasa also pushed for IT development, as well as the establishment of 25 new industrial zones. He said tourism should be supported so that it becomes the country’s top foreign currency earner.

Wickremesinghe said during the campaign that he would double tourist arrivals and establish a national wealth fund, as well as new economic zones to increase growth.

Additional reporting by BBC Sinhala

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Business

UniCredit lifts stake in Commerzbank to 21%

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UniCredit has increased its stake in Germany’s Commerzbank from about 9 per cent to 21 per cent, in a move that could kick-start a hostile bid for the rival lender.

The Italian bank said on Monday it had taken a position in a further 11.5 per cent of Commerzbank’s shares, but that the deal would not complete until “the required approvals have been obtained”.

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A merger between the two groups would be the first significant cross-border bank deal in Europe since the financial crisis and a potential catalyst for further consolidation across the continent’s fragmented sector.

UniCredit surprised the German establishment two weeks ago by unveiling a 9 per cent stake in Commerzbank, a lender it has long courted as a takeover target.

UniCredit needs approval by the European Central Bank to lift its stake above 9.9 per cent.

UniCredit said on Monday that “there is substantial value that can be unlocked within Commerzbank, either standalone or within UniCredit, for the benefit of Germany and the bank’s wider stakeholders”.

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Chief executive Andrea Orcel has set his sights on acquiring European rivals, with the potential to turn the Italian lender into a vehicle for consolidating the sector.

The Italian bank bought a 4.5 per cent stake from the German government earlier this month, but it had already accumulated a 4.5 per cent position through derivatives.

The move has caused uproar in Germany, with politicians and labour unions opposing a full takeover.

Executives at Commerzbank have warned the German government that a tie-up with UniCredit could hobble lending to small and medium-sized Mittelstand companies, while unions have raised the prospect of job cuts.

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Israel Launches ‘Extensive Strikes’ in South Lebanon

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Israel Launches 'Extensive Strikes' in South Lebanon

JERUSALEM — The Israeli military on Monday called on residents of southern Lebanon to immediately evacuate homes and other buildings where it claimed Hezbollah stores weapons and said it was carrying out “extensive strikes” against the militant group.

It was the first warning of its kind in nearly a year of steadily escalating conflict and came after a particularly heavy exchange of fire on Sunday. Hezbollah launched around 150 rockets, missiles and drones into northern Israel in retaliation for strikes that killed a top commander and dozens of fighters.

There was no sign of an immediate exodus from the villages of southern Lebanon

The escalating strikes and counterstrikes have raised fears of an all-out war, even as Israel is still battling the Palestinian Hamas in Gaza and trying to return scores of hostages taken in Hamas’ Oct. 7 attack. Hezbollah has vowed to continue its strikes in solidarity with the Palestinians and Hamas, a fellow Iran-backed militant group, while Israel says it is committed to returning calm to the border.

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Associated Press journalists in southern Lebanon reported heavy airstrikes targeting many areas Monday morning, including some far from the border.

Read More: Fear Grips Lebanon After Deadly Twin Pager and Radio Blasts

Lebanon’s state-run National News Agency said the strikes hit a forested area in the central province of Byblos, about 130 kilometers (81 miles) north of the Israeli-Lebanese border, for the first time since the exchanges began in October. No injuries were reported there. Israel also bombed targets in the northeastern Baalbek and Hermel regions, where a shepherd was killed and two family members were wounded, according to the news agency. It said a total of 17 people were wounded in the strikes.

An Israeli military official said Israel is focused on aerial operations and has no immediate plans for a ground operation. The official, speaking on condition of anonymity in keeping with regulations, said the strikes are aimed at curbing Hezbollah’s ability to launch more strikes into Israel.

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Lebanese media reported that residents received text messages urging them to move away from any building where Hezbollah stores arms until further notice.

“If you are in a building housing weapons for Hezbollah, move away from the village until further notice,” the Arabic message reads, according to Lebanese media.

Lebanon’s Information Minister Ziad Makary said in a statement that his office in Beirut had received a recorded message telling people to leave the building.

“This comes in the framework of the psychological war implemented by the enemy,” Makary said, and urged people “not to give the matter more attention than it deserves.”

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It was not immediately clear how many people would be affected by the Israeli orders. Communities on both sides of the border have largely emptied out because of the near-daily exchanges of fire.

Read More: The Coming Israel-Hezbollah War

Israel has accused Hezbollah of transforming entire communities in the south into militant bases, with hidden rocket launchers and other infrastructure. That could lead it to wage an especially heavy bombing campaign, even if no ground forces move in.

The military said it had targeted more than 150 militant sites early Monday. Residents of different villages in southern Lebanon posted photos on social media of airstrikes and large plumes of smoke. The state-run National News Agency also reported airstrikes on different areas.

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An Israeli airstrike on a Beirut suburb on Friday killed a top Hezbollah military commander and more than a dozen fighters, as well as dozens of civilians, including women and children.

Last week, thousands of communications devices, used mainly by Hezbollah members, exploded in different parts of Lebanon, killing 39 people and wounding nearly 3,000. Lebanon blamed Israel for the attacks, but Israel did not confirm or deny its responsibility.

Hezbollah began firing into Israel a day after the Oct. 7 attack in what it said was an attempt to pin down Israeli forces to help Palestinian fighters in Gaza. Israel has retaliated with airstrikes, and the conflict has steadily intensified over the past year.

The fighting has killed hundreds of people in Lebanon, dozens in Israel and displaced tens of thousands on both sides of the border. It has also sparked brush fires that have destroyed agriculture and scarred the landscape.

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Israel has vowed to push Hezbollah back from the border so its citizens can return to their homes, saying it prefers to do so diplomatically but is willing to use force. Hezbollah has said it will keep up its attacks until there is a cease-fire in Gaza, but that appears increasingly elusive as the war nears its anniversary.

Hamas-led militants stormed into southern Israel on Oct. 7, killing some 1,200 people, mostly civilians, and abducting around 250. Some 100 captives are still held in Gaza, a third of whom are believed to be dead, after most of the rest were released during a weeklong cease-fire in November.

Israel’s offensive has killed over 41,000 Palestinians, according to Gaza’s Health Ministry, which does not differentiate between civilians and fighters in its count. It says women and children make up a little over half of those killed. Israel says it has killed over 17,000 militants, without providing evidence.

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Mroue reported from Beirut. Associated Press writer Abby Sewell in Beirut contributed to this report.

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Nest forms £1bn BTR investment platform with L&G and PGGM

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Nest forms £1bn BTR investment platform with L&G and PGGM

Initially backed by £350m of combined investment, the new partnership will build on L&G and PGGM’s existing joint venture with Nest, which manages £43bn of assets on behalf of a third of the UK workforce.

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Germany, political extremism and the risks to Ukraine

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The potential impact of Donald Trump on the Ukraine war and the western alliance is well understood. But what happens in Germany could be almost as important.

The Germans are the second-largest national aid donors to Ukraine, after the US, and they are central players in both the EU and Nato. But populist parties, sympathetic to Russia, are on the rise in Germany.

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The Alternative for Germany party (AfD) almost won the elections in the state of Brandenburg on Sunday. This is the party’s third strong performance in a row, after coming first in state elections in Thuringia and a close second in Saxony.

Combine the AfD vote with that of the Sahra Wagenknecht Alliance (BSW) and something like a third of Germans — and many more in eastern Germany — are voting for populist parties that are militantly anti-migration, hostile to Nato and determined to cut off aid to Ukraine. When Volodymyr Zelenskyy addressed the Bundestag in June, all but four of the AfD’s 77 members boycotted his speech.

The policy stances taken by the AfD and BSW, combined with accusations that many AfD members have an undeclared agenda that is even more extremist, mean that Germany’s traditional parties will refuse to go into coalition with the populists — at least at the national level. But the rise of the political extremes is already having an influence on government policies. Germany’s decision to impose border controls with its EU neighbours reflects the angst about illegal migration that the populists have capitalised on.

Ukraine’s supporters worry that the next policy adjustments will involve a softening of German support for Kyiv. The Ukrainian army is already struggling to hold off Russian forces in the east of the country and is running short of ammunition and troops. A decline in German and American support for Ukraine could help Russia to win the war.

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Even if Russian tanks do not roll into Kyiv, Ukraine’s supporters worry that the Zelenskyy government may soon be forced to make territorial concessions that would allow Vladimir Putin to claim victory. A bad peace deal could put Ukraine’s future as a viable nation in doubt and embolden Putin to threaten other countries.

Ukraine’s friends in Berlin see proliferating signs of a possible softening in German support. While Britain and the US are debating allowing Ukraine to use their long-range missiles to strike deep inside Russia, Germany has ruled out supplying its own Taurus missiles.

Germany’s finance minister, Christian Lindner, has said that there can be no further package of financial aid for Ukraine, without making politically impossible compensatory cuts in the budget. The EU’s decision to mobilise some frozen Russian assets to help Ukraine has taken the financial pressure off Berlin for now. But the question of German financial aid is certain to return.

Chancellor Olaf Scholz is lagging badly behind in national polls and looks to be heading for defeat in next September’s federal elections. Ukraine’s most ardent supporters worry that Scholz may be tempted to try to revive his political fortunes, by launching a pre-election peace initiative with Russia.

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Nervousness about what Scholz might be up to was reflected in rumours doing the rounds in Berlin last week that a contact group, composed of members of his Social Democratic party, was in Moscow for secret talks.

These suggestions were waved away in the chancellery. Scholz’s key aides seem almost equally exasperated by the Russophile populists and by the hawks in Berlin that are demanding a sharp increase in aid for Kyiv. They see themselves as representing the moderate German middle on Ukraine. The government’s task, as Scholz sees it, is to keep a divided country together around a basically pro-Ukraine policy.

For the Ukrainians, however — long frustrated by what they regard as the snail-like pace of German aid — any suggestion that the Scholz government may become even more cautious is dismaying. Hawks in Kyiv and Berlin argue that if Putin is not defeated in Ukraine, he will move on to threaten Nato and ultimately Germany itself.

Scholz and his allies insist that he is not naive about the threat posed by Putin. They see the daily evidence of Russian brutality in Ukraine, as well as sabotage and disinformation inside Germany itself. Over the long term, German analysts worry that Russia has now fully converted into an economy primed for war and weapons production. They note that some of the most advanced weaponry that Russia is churning out is not being used in Ukraine, but seems to be being stored for some possible future conflict.

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The German chancellor knows all this. But political leaders live in the moment and their outlooks are almost invariably dominated by domestic politics. Scholz has a very difficult election ahead and would like to run as the peace candidate.

He is also based in Berlin — a city that has seen so much darkness and tragedy — but which now feels a long way from the front lines of Ukraine. Last week, the pavement bars and bike paths near the chancellor’s office were full of people enjoying the late summer sunshine. The idea that dark times are returning to Europe is a hard thing for a government — or for a people — to face.

gideon.rachman@ft.com

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Reach CEO Jim Mullen says regulation needed to save free online news

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Reach CEO Jim Mullen says regulation needed to save free online news

The chief executive of the UK’s biggest commercial news publisher has called for big tech regulation so the platforms pay for content and prioritise reliable information.

Reach CEO Jim Mullen said regulation should make the advertising market less “heavily distorted” in the platforms’ favour.

Speaking at a dinner held by The Stationers’ Company in London on Wednesday, Mullen said there is “simply too much power in the hands of platforms and their algorithms” because news consumption is so disintermediated through channels outside publishers’ control.

“Too much power in that they can hoover up the advertising revenue and threaten the existence of advertising-subsidised news and too much power to promote unreliable, untrustworthy and unscrupulous news,” he said.

Mullen said “this decade has seen more people than ever before consuming news” meaning the fundamental problem is not about attracting audiences.

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“The bigger challenge is revenue, and here the tech platforms have a part to play too, but so far they have refused to negotiate openly on the value of journalistic content.”

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In May the UK Parliament passed the Digital Markets, Competition and Consumers Act which will enable tech companies like Google, Apple and Facebook to be given “strategic market status” and be regulated. This could result in the platforms being compelled to pay publishers for the use of their news content and inform them of upcoming algorithm changes.

Justin Madders MP, who has ministerial responsibility for competition, has said the aim is for the pro-competition regime to be brought into effect in December or January with market investigations to be launched by the Competition and Markets Authority “shortly afterwards”.

Mullen said: “Platforms have so far resisted efforts to be lumped in with publishers and the responsibilities we carry. They don’t determine reliable news, they don’t place a value on trusted sources, they just provide avenues of news for the reader to browse.

“It’s why politics of deliberate division and misinformation have sprung up. It’s why teams of people work to influence attitudes and feelings in other countries. It’s why recent elections and referendums have been influenced by such operators. We all know this goes on, but little has been done to protect the end user from such operations.”

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“If platforms are regulated to pay the providers for the content they so freely offer, if they are regulated so that the advertising market is not so heavily distorted in their favour and that reliable trustworthy news is prioritised in their feeds, then there is hope.”

Yesterday (Sunday), the editor of Reach-owned Liverpool Echo, Maria Breslin, published a call for the future of regional journalism to be on the Government’s agenda as the Labour Party conference opened in her city.

Breslin cited the importance of the Echo’s fact-checked journalism in the aftermath of the recent fatal stabbings of young girls in Southport and the riots that followed.

“But the sad truth is we operate in a world where tech giants make big money from the content we lovingly produce and where peddlers of mistruths seemingly operate freely and without scrutiny,” she said.

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“In the right hands that advertising revenue would strengthen brands like the Liverpool Echo and help ensure trusted news is free for all and not a nice-to-have based on the ability to pay.”

Publishers are increasingly allies

Mullen said that in the face of such challenges, publishers must work more collaboratively than ever – echoing comments made by DMG Media CEO Rich Caccappolo to the Press Gazette Future of Media Technology conference.

“My competitors are still The Sun, the Mail and The Guardian but increasingly they are our allies as we are fighting an existential battle for survival because of the competition from the likes of Google and Meta,” Mullen said.

Merits of advertiser-funded journalism over paywalls

Reach is among the publishers most vulnerable to major algorithm and strategy changes from Google and Facebook as all of its sites are advertising-funded with no paywalls.

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Mullen said: “Advertising-funded journalism has its flaws and challenges but, for over 100 years, it has played an essential role in public life. It is the model that made news affordable for the masses. Think about it and how we take news and access to it for granted.”

Referring to the idea that the answer to sustainability may be in building a strong subscription-based business, Mullen responded: “It is not for me to comment on others’ business models but you’ll forgive me if I pause and ask you to think about what this means for us as a society and as a democracy.

“Is it right that news, the news to make important decisions and the news to fully understand what is happening either in your council or your Government, has to be paid for through a monthly subscription?

“Before you say well the papers were never free, that is true, but those papers contain so much more than just news, they have games, puzzles, TV guides, guides to the day ahead, horoscopes and cartoons. They are a day’s entertainment not just news… News cannot be seen as a luxury, because to do so strips the basic rights of people to be able to judge their government, to form an opinion and to have a voice that answers back to that government.”

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Mullen also raised concerns shared by numerous commercial publishers about the BBC’s impact on the ecosystem.

He said their recent increased investment in local digital news output (at the expense of local radio) “does raise questions to me over their remit and the fairness of a tax funded free news website if it is at the expense of a varied commercial news ecosystem”,

He concluded: “All we want is a level playing field because with that, as we have for years, we can show that advertising funded journalism works, it puts reliable news and information into everyone’s hands and allows them to make informed decisions about the future.”

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Travel

Barefoot Luxury At Its Finest at North Island, Seychelles

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(credit: North Island)

The tropical oceanic climate of this small country presents the ultimate in barefoot luxury and a backdrop for an exceptional and unique destination. Located in the far north of the Indian Ocean archipelago, North Island measures at 201 hectares where guests are surrounded by turquoise water and breathtaking white sand beaches and warm crystal-clear waters, a dream island fantasy island that has come to life. Only accessible by boat or helicopter, the island resort attracts visitors seeking the ultimate romantic escape offering views of jagged peaks, vibrant green jungles and a wide variety of water-based and land-based activities.

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(credit: North Island)

While the resort opened in 2003 and has gone through refurbishments and modern upgrades, the island was put on the map in 2011 as it was the honeymoon destination of the Duke and Duchess of Cambridge. Located amongst the granitic islands of Seychelles, one of its 115 islands dotted in the Indian Ocean, North Island is a place of exclusive luxury within an exquisite wilderness sanctuary. Comprising 11 villas, each measuring between 5,000 and 8,000 sq. ft., the villas have all been created from local materials harvested during the island rehabilitation process in 1997, balancing luxury and simplicity to make it your own sanctuary.

(credit: North Island)

Immersed in lush tropical vegetation and just steps from the soft white-sand beach, the villas offer each guest unparalleled space and total discretion. The villas balance serene comfort with the natural environment, as they are screened from view by the natural vegetation, ensuring total privacy. Presenting a mix of textures and handcrafted furniture, each villa has a private plunge pool, a butler and fully retractable doors with spectacular views of the ocean beyond.

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The epitome of luxury is their Villa North Island which is perched on a granite cliff at the edge of East Beach. This grand villa is spread over one level and presents two bedrooms and a bathroom and features a hidden entrance through the adjacent coconut groves. Guests of this villa enjoy unmatched views of the beach along with an oversized marble bath perfect for sharing and excellent sunrise sights, adding to its grandness and romance.

(credit: North Island)

Beyond a luxury destination, sustainability lies at the heart of North Island’s philosophy and allows for an inimitable experience. With a true sense of place, the island employs full-time environmentalists to preserve one of the world’s most biologically diverse and important areas. Its Noah’s Ark program started in 1997. The ambitious challenge to restore the island following the collapse of the coconut industry in the 1970s has seen multiple efforts in marine conservation, forest restoration, sea turtle nesting and its Magpie Robin conservation local conservation program. Guests on the island can also meet Brutus, their 450-lb 160-year-old turtle which lives on the island.

(credit: North Island)

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Guests who visit the island will have their own golf buggy to traverse the winding sandy paths from their villa to the restaurant or beaches around. North Island allows guests to live the idyllic island life with its generous list of activities, where couples can feel like they have the entire island to themselves. From yoga to aquatic experiences to massages by the sea to a number of excursions like diving, hiking and fishing, a day on North Island is pure bliss. 

The scenery at and around the resort perfectly positions itself as one of the most romantic spots in the world. Whether couples are celebrating their dream honeymoon or planning the ultimate beach destination wedding, the resort offers bespoke offerings that couples will never forget. A place of natural beauty and timeless relaxation, the calm rhythm of the Indian Ocean infuses the resort and offers guests a private place to rejuvenate their bodies and awaken their souls. 

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