Press briefing of Cabinet Decision taken on 2011-01-12

CATIC Grant Skyline Hotel and Rainbow Multifunction Complex in Colombo

- China National Aero Technology Import and Export Corporation (CATIC) intends to purchase about 7 acres of land around Galle Face Green area, close to the land already assigned for Shangri-La Hotels Lanka (Pvt) Ltd., to build a multifunction complex comprising a five star hotel and a shopping mall. The total investment on this project will be nearly US $500 million. The proposal made by the Minister of Economic Development, Hon. Basil Rajapaksa, to proceed with the project proposal, was approved by the Cabinet. The planned development in this area has already attracted another investment of around US $500 million from Shangri-La Hotels Lanka (Pvt) Ltd., which proposes to built a 500 room hotel, residencies and shopping complex to be completed by 2013. The total foreign investment on these two projects will be around 1000 million and would assist developing Colombo as a Middle Income Commercial City and also to accommodate nearly 2.5 million tourists expected by 2016.