Sri Lanka to build US$3bn tourism city with Singapore firm: BOI

July 04, 2012 (LBO) – Sri Lanka’s state investment promotion agency said it had inked a deal with a Singapore led consortium to build a 3 billion US dollar tourism city in Katana, north of the capital Colombo. Earlier reports had said that Sun City, a South Africa based firm will build an 800 million US dollar resort complex in Katana.

The BOI is targeting 1.7 billion dollars of investments this year, lower than 2.0 billion dollars projected by the central bank, due to weak economic conditions in the West, Ferdinando told a UK-based newspaper last month.

Since a 30-year war ended in 2009, Sri Lanka has forecast a five-fold increase of 2.5 million foreign visitors by 2016, who will generate some 2.75 billion dollars in revenues.

Corrected 30-year war A consortium led by Asian Resorts & Casinos, a Singapore based firm, will invest in Katana City Developments Private Limited, the project company.

The BOI said a 200 acre site will see hotels with 2,500 rooms, shopping malls and other facilities that will eventually bring investments of over 3 billion US dollars, and create 10,000 jobs.

“Katana City will deliver an exciting tourism offering for high volume arrivals, and the result w