Sheraton group of US to invest on a luxury hotel project in Colombo

The ITC limited of India, a Franchise of SHERATON Group of USA is to invest in a luxury hotel and mixed development project in Colombo. Sri Lanka government on Thursday approved this US dollar 300 million FDI and a land extent of 5 acre in the close proximity of Military headquarters, Colombo on a 99 year long lease.

Accordingly, as per the proposal made by Mr Basil Rajapakse, Minister of Economic Development, Cabinet decided to lease out this block of land earlier allocated to M/s CATIC of China for a sum of US $ 73.5 million as indicated by the Chief Government Valuer. ITCL is a reputed hotel investment group in India, with investments and hotel in India. The government hopes that its presence in Sri Lanka will be a significant contribution towards promoting FDI and the tourism industry in the country.

The same premises opposite Galle Face green had earlier been given to CATIC/AVIC International Hotels Lanka ltd to undertake a mixed development project. Since they have withdrawn their proposal and the government will reimburse the sum of USD 54.4 million already paid by CATIC for the lease of the land.

The Government has embarked upon a project to convert Colombo as a Middle Income City in terms of the long term development framework of the Government; This includes housing for shanty dwellers presently living within the city; so as to ensure better, living conditions and to provide them opportunities for urban employment and livelihood activities.

This project, a nature of a reputed investment with US D 300 million FDI will be a boost for Sri Lankan tourism industry since it holds franchise of Sheraton Group of USA.

The Board of Investment of Sri Lanka will enter in to a MoU with ITCL enabling them to execute the project under tax concessionary terms with permitted exemptions granted in terms of BOI Act.

 

Source: Government News Portal