Press briefing of Cabinet Decision taken on 2011-11-30

Flagship Investment in the City of Colombo by M/S International TC Limited (ITCL) of India Franchisee of Sheraton Group of USA

- Colombo is to be developed as a Middle Income City in terms of the long term development framework of the Government. This includes housing for shanty dwellers presently living within the city, so as to ensure better living conditions and to provide them opportunities for urban employment and livelihood activities. The new plan will also protect the green belt areas, waterway reservations etc. M/s. ITC Limited of India, 'Franchisee of SHERATON GROUP of USA' has expressed its interest to invest in a sum of US $300 million, in a luxury hotel and mixed development in Colombo. Accordingly, the proposal made by Hon. Basil Rajapakse, Minister of Economic Development, to provide a block of land on lease in Colombo, on the recommendation of the Standing Cabinet Appointed Review Committee (SCARC), was approved by the Cabinet. The proposal was also supported by the Indian High Commission in Colombo and Indian Senior Government Officials, as a reputed investments that would be beneficial for Sri Lanka's tourism industry.