I check the release notes:
http://scn.sap.com/docs/DOC-28833
At "Release Notes for SAP HANA Cloud - 18 July 2013"
| Logging for Applications | Enhancement | Loggers configuration is now persisted on both local runtime and SAP HANA Cloud level. Logger level settings are kept and restored on a server restart, so you do not need to set them over again when restart or redeploy your application. For more information, see Managing Application Logs from the Eclipse IDE. |
So this functionality should work.
If you test this on local server then you need to get new SDK and to recreate your runtime and local servers (with this new SDK) to make this works.
For cloud scenario - this should work out of the box even with older tools and SDK - but it does not hurt to get new versions.
Regards