Jan 14, 2010 (LBO) – Sri Lanka is raising 250 million US dollars from the sale of two blocks of land to developers who will build hotels and shopping complexes near the main beachfront in the capital Colombo, a government minister said. Hong Kong based Shangri-La hotels and state-run China National Aero Technology Import and Export Corporation (CATIC) have been charged 125 million US dollars each for state land near the ‘Galle Face’ area, economic development minister Basil Rajapaksa said.
“Shangri-La paid the money in December. CATIC will also pay the money soon,” minister Rajapaksa said.
“The land is given on a 99-year lease.”
Rajapaksa said while Shangri-La will build and operate its own hotel, CATIC is expected to partner with an international leisure chain to run the hotel.
The two projects, valued at 500 million US dollars each is build on a state land where a military sports ground is currently located. The balance part of the land will be used as a common amenities and green area bordering a freshwater lake near the beachfront.