Sri Lanka's The Daily Mirror newspaper said Chaudhary is negotiating with owners for land in the Jaffna peninsular to build a 600,000 tonnes a year integrated cement plant which is expected to cost around 75 to 100 million US dollars.
Sri Lanka's Board of Investment, the Geological Survey and Mines Bureau has given preliminary approval, the report said.
In addition to the about 50 acres of land needed for the factory, the company was planning to lease land bearing limestone rock from residents in the peninsular.
Jaffna has high quality limestone which was used to produce cement at two state-run factories before a 30-year civil war broke out in the early 1980s.
Chaudhary's firm will also invest in 15 million US dollars in a hotel in Kandy with Sri Lanka's Jetwing group, with which it has other investments, The Daily Mirror said.
It is also a joint venture partner with India's India's Taj Hotels and Resorts which has investments in Sri Lanka.
His group is also convert