Sri Lanka will build a new ‘tourist city’ in the western coastal city of Katana north of the capital Colombo, which may draw US$1.5 billion in foreign investments in its first phase alone, a government minister was quoted saying.Lanka Business Online said the development would have four 5-star hotels with 2,300 rooms, an exhibition and convention centre and two shopping malls and be sited on a 80 hectare block of state land.A firm called Asian Resorts & Consortium has been given approval by the cabinet of ministers to conduct a feasibility study.Information minister Keheliya Rambukwella was quoted saying that it was probably a foreign firm, but exact details were not available with him at the time.Sri Lanka’s tourism development authority has also offered a series of islands off the western coastal city of Puttalam for private investment. Land has also been offered in the east coast in Kuchchaveli.
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