Shangri-La deal:

Land not undervalued

Nadira GUNATILLEKE

The Government did not give Colombo land to any individual or party in a fraudulent manner, Economic Development Deputy Minister Lakshman Yapa Abeywardene said.

"Only investments over US$ 20 million are entertained. Lands are offered under the Strategic Development Act only to world recognized investors like Shangri-La which is among the top five hoteliers in the world", the Deputy Minister said. Addressing a press briefing in Colombo yesterday, he said, they had been given six acres of land at a price of US$ 75 million. "One acre cost US$ 12.5 million. Another four acres are to be given at US$ 50 million. Shangri-La spends US$ 125 million only for the land. The land value was estimated considering the future value in addition to the present value. It will be a five star hotel with 500 rooms," Abeywardene said.

According to the Deputy Minister, the Government's aim is establishing 50,000 hotel rooms by 2016 and bring down 2.5 million tourists.

"Then one in every seven Sri Lankan will depend on tourism. Shangri-La has 70 hotels with a room capacity of 30,000 around the world. It will invest US$ 300 million for the Colombo project to commence within three years, he said. "The same company will invest US$ 100 m to build a four star hotel with 400 rooms and a golf course at Hambantota. Three other world class companies have already contacted the BOI to invest in Sri Lanka with Sri Lanka gaining recognition by bringing down Shangri-La hotel chain to invest here. The Sri Lanka's political stability is reassured by these mega investments, he said.

The Deputy Minister said that Nepal provides a good example for Sri Lanka's Opposition by uniting with the Government to promote tourism.