Sri Lanka to lease islet for resort for a billion rupees

Nov 01, 2012 (LBO) - Sri Lanka will lease an islet off the Western coast of the island for a 1,070 million rupee upfront payment to a developer to build an integrated tourist resort, information minister Keheliya Rambukwelle said.
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The cabinet of ministers had approved a proposal by economic development minister Basil Rajapaksa to lease the 450 islet for 99 year to Sapphire Bay Resorts (Pvt) Ltd, he said.

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The islet called Uchchimunai off Kalapitiya north of Sri Lanka's capital Colombo is among several state-owned that have been offered to foreign investors.

The firm is expected to build a resort with hotels, water villas and a golf course on the islet.

Sri Lanka has seen a tourism boom with the end of a 30-year war in 2009 with 855,000 tourist coming in 2011.
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This year arrivals are expected to top one million.

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Corrected up front payment Rs,1,070mn