Sri Lanka gets $25mn Indian hotel investment

June 04, 2009 (LBO) – The Sri Lankan government said it had approved a proposal by an Indian company to set up a four-star hotel and convention centre with an investment of 25 million US dollars. Media minister Anura Yapa said the unsolicited proposal had been received from Suchirindia Hotel and Resorts in Hyderabad, India.

The proposal hotel would be set up on a three-acre block of land owned by the island’s investment promotion agency, the Board of Investment near the export processing zone at Katunayake, just north of Colombo where the international airport is located.

Yapa told reporters that according to the project proposal the hotel would have 170 rooms.

The height of the building would be restricted as it is in a high security zone being close to the airport.

The building has also to be built on pillars since the ground water is extracted from tube wells situated within the site for use by export factories.

As result of these restrictions the government has decided to value the land at 88.5 million rupees, give the land on a 50-year lease and charge 12,000 rupees a year as nominal rent during the lease period.