Sri Lanka seeks developers for prime property

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

June 30, 2011 (LBO) - Sri Lanka is searching for a buyer for a block of prime beach front land adjacent to two that are slated to be among the largest real-estate cum hotel developments to start in the country after the end of a 30-year war, officials said.
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"The land is still available," deputy economic development minister Lakshman Abeywardene said.

Sri Lanka sold 10 acres of land to Hong Kong based Shangri La for 125 million US dollars in the 'Galle Face' beach front, shifting military installations that occupied the land.

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Another 10 acres of land were given to CATIC, a Chinese defence contractor, for 136.5 million dollars, Abeywardene said.

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The two investors are expected to build 500 million dollar mixed hotel, shopping and apartment complexes.
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The developments have to be completed within 42 months, Abeywardene said.
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Treasury secretary P B Jayasundera said earlier in the week that the 4-acre block of land was available at a valuation of 13.6 million US dollars an acre.

Sri Lanka's tourist arrivals surged 40 percent in 2010, with similar trends this year.

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Abeywardene said nearly 500 acres of state land were also available for hotel developments at Kuchchaveli in northeastern Sri Lanka at a valuation of 20 million rupees an

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