Colombo Land Prices to Go Up on Benchmark Set by Shangri-La and CATIC Land Sales

28th July 2011, www.island.lk

The sale of land to Shangri-La and CATIC has set new benchmarks for land prices in Colombo, a senior businessman said.

John Keells Holdings Chairman Susantha Ratnayake said the land prices in Colombo has surged after the sale of land to the two international hotel firms who would developing star class hotels and shopping complexes in the city.

Several key investors are investing in Colombo land and it is expected to increase further, while the existing land owners are looking at large scale projects.

The government last December sold six acres of land followed by four acres in March to Shangri-La at US$ 125 million while selling 10 acres to CATIC at US$ 136 million.

Each firm would be investing more than US$ 300 million to develop star class hotels facing the Gall Face Green.

Recently Deputy Economic Minister Lakshman Yapa Abeywardena said that the Chinese investment would be followed by an influxe of Chinese tourists which will help Sri Lanka to achieve its ambitious goal of 2.5 million arrivals by 2016 and five million by 2020 increasing the foreign exchange earnings through the tourism sector ten fold.

The tourism sector revenue increased 50 percent during the first half of this year attracting 381, 538 visitors which reflecting a growth of 36.9 percent.

According to Central Bank data the earnings reached US$ 370 million, up 50 percent compared to US$ 245 million a year ago.

Related Info :

• Shangri La Finalizes Agreement to Construct a Seven Star Hotel in Colombo

• Chinese Company to Build Another Luxury Hotel and Shopping Complex in Colombo, Sri Lanka

• Colombo City Centre to be Developed into a Pedestrian Only Area for Tourist Attraction

Chinese Company to Build Another Luxury Hotel and Shopping Complex in Colombo, Sri Lanka

14th January 2011, www.colombopage.com

The Sri Lankan government has decided to proceed with a proposal from Chinese company to build another luxury hotel and shopping complex in the heart of the Sri Lankan capital.

China National Aero Technology Import and Export Corporation (CATIC) intends to purchase land around Galle Face Green area to build a multifunctional complex comprising a five star hotel and a shopping mall with direct investment of nearly US $500 million, the government announced Thursday.

The Cabinet of ministers Wednesday has approved the proposal submitted by the Minister of Economic Development, Basil Rajapaksa to build the Skyline Hotel and Rainbow Multifunctional Complex in the city.

Earlier Hong Kong-based Shangri-La Hotels entered into an agreement with the government to invest US$ 500 million to build a 500-room luxury hotel-shopping complex in the same area. The project is to be completed by 2013.

The government says the proposed projects will assist developing Colombo as a Middle Income Commercial City and also to accommodate nearly 2.5 million tourists expected by 2016.