Tourism Minister Anura Bandaranaike said the first and second phase of infrastructure development will be carried out by the Urban Development Authority and the State Engineering Corp., subject to approvals and clearances from the Central Environmental Authority, Coast Conservation Department, Fisheries and Defence Ministries.
In November, Sri Lanka announced plans to impose a 10 dollar fee on tourist visiting the island, as part of revenue collection measures for 2007.
Tourists from 78 countries are currently issued 30 day visit visas free of charge at the time of arrival.
President Mahinda Rajapakse, who is also the island's finance minister said in his budget speech that the funds collected from overseas visitors will be used for environmental protection and to maintain archeological sites.