Sheraton to build hotel in Sri Lanka's capital Colombo

6 November 2011 11:45 am - 1 - {{hitsCtrl.values.hits}}

A A A

Sheraton Hotels and Resorts, the largest Starwood Hotels and Resorts Worldwide brand, will build a hotel in the Sri Lankan capital on land originally offered to a Chinese firm, a government official said on Sunday.

The island nation's junior economic minister said the government has completed negotiations with Sheraton to allocate the land, earlier offered to China National Aero Technology Import and Export Corporation (CATIC).

"The negotiations with Sheraton are successfully over and we have agreed to give (the) CATIC land," Lakshman Yapa Abeywardene told Reuters.

However, he declined to comment on the amount of the investment or extent of land the government had agreed to offer Sheraton under a 99-year lease.

Last month, Sri Lanka annulled a $500 million investment deal with CATIC after it refused to sell the beach front land outright to the state-run Chinese conglomerate as agreed earlier.

The CATIC deal was among the largest foreign investments since Sri Lanka won a quarter-century civil war in 2009, and analysts say its cancellation has created concerns among potential investors.

The land deal was cancelled after the main opposition United National Party (UNP) questioned it in a parliament dominated by President Mahinda Rajapaksa's ruling party.

Officially, Rajapaksa questioned why the land for the hotel on the colonial-era Galle Face seafront grounds was being sold instead of given on a long-term lease. CATIC balked at the change in terms, having already paid $54.5 million.

The government says it is negotiating to give CATIC another property, and is in talks to lease the land in front of Galle Face Green it offered earlier to another party, which it declined to name, to build a hotel.

However, the government has not changed the terms of a similar $500 million hotel, shopping and apartment project with Shangri-La Asia Ltd , which paid $125 million to buy 10 acres next to the 6 acres CATIC wanted.

CATIC is primarily a weapons manufacturer, but has other interests, including in hotels. (Souce: Reuters)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

Shakeel Sunday, 06 November 2011 01:20 PM

This is a wonderful news if its officially released by Sheraton itself.

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Sheraton to build hotel in Sri Lanka's capital Colombo

Comments - 1

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Ranil Wickremesinghe caravan moves on despite barking dogs

Sri Lanka weighs Open Skies amidst plans for national carrier privatization

Two racing drivers arrested over Fox Hill tragedy

Racing event tragedy leaves seven dead including eight-year-old child

Man who jumped off Sri Pada Uda Maluwa and went missing, found

MIRROR CRICKET

Sahan Arachchige to lead Sri Lanka ‘A’

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

TODAY'S HEADLINES

Sri Lanka to establish new energy sector regulator

Cabinet nod to transfer China-built Mattala airport’s management to Indian, Russian joint venture

Sajith never attends dinners hosted by Ranil Wickremesinghe

One soldier dead, nine injured in road crash

Sahan Arachchige to lead Sri Lanka ‘A’

Dates confirmed for 78th Bradby Shield

SLAS appoints independent committee for investigation

Pakistan lose key players for last two T20Is against New Zealand