Dec 16, 2010 (LBO) – Hong Kong based leisure group Shangri-La will invest 500 million US dollars in a hotel project on the main beachfront of Sri Lanka’s capital Colombo, a government minister said. The land is expected to be sold for 75 million US dollars according to reports.
“The Shangri-La group has come forward with an investment of 500 million US dollars,” deputy economic development minister Lakshman Yapa Abeywardene said.
Sena Suriyapperuma, managing director of Pyramid Lanka, the local partners of Shangri-La said the initial memorandum of agreement has been signed with Sri Lanka’s government.
Shangri-La chief Khoon Ean Kuok and Suriyapperuma met Sri Lanka’s President Mahinda Rajapaksa on a visit to scout potential sites for a hotel project.
Suriyapperuma said investors hoped to finalize the deal in the first quarter of 2011.
Shangri La is expected to build a hotel, a shopping complex and apartments.
The government is now expected to shift a military sports camp facing Colombo’s iconic ‘Galle Face’ beachfront to make way for the project.