Cabinet DECISIONS

Sheraton group to invest on luxury hotel project in Colombo

M/s ITC Limited of India, Franchise of Sheraton Group of USA is to invest in a luxury hotel and mixed development project in Colombo.

The government has embarked on a project to convert Colombo as a middle income city in terms of the long-term development framework of the government.

This includes housing for shanty dwellers living within the city; to ensure better living conditions and to provide opportunities for urban employment and livelihood activities.

On a proposal by Economic Development Minister Basil Rajapaksa Cabinet decided to provide a block of land in extent of five acre near Army headquarters in Colombo on a 99 year lease for US$ 73.5 million as indicated by the chief Government Valuer for this project.

This project, a nature of a reputed investment with US$ 300 million FDI will be a boost for Sri Lankan tourism industry since it holds franchise of Sheraton Group of USA.

Cement processing plant at Hambantota Port

Cabinet granted approval to award the contract to set up a cement grinding Plant at Hambantota Port to M/s. Thatta Cement Co. of Pakistan on a proposal by President Mahinda Rajapaksa, in his capacity as the Ports and Highways Minister.

Cabinet approval has been granted to commence the under mentioned business ventures under the Hambantota Port Development Project by successful bidders: M/s Shree Renuka Sugar Ltd - India for operation of a sugar refinery Plant; M/s. Peak Energy (Pvt) Ltd - Singapore for operation of Petro Chemial Plants (pET Resin Plant), and, M/s Haleys Advantis Ltd for Fertilizer Storage/ Processing/ Bagging Plant.

Four hospitals in Kilinochchi and Mullaitivu districts to be reconstructed

Cabinet approval was granted to develop four hospitals with grant assistance in Rs. 190 million from the United States Pacific Command and Rs. 23 million from domestic funds on a proposal by Health Minister Maithripala Sirisena. The Divisional Hospital - Oddusudan in Mullaitivu District, Base Hospital Mulankavil, Divisional Hospitals in Poonagary and Pallai in Kilinochchi districts will be reconstructed.

The government is taking action to strengthen health services in the Northern Province which were not functioning well during the last three decades due to the conflict.

Mullaitivu district has five Divisional Secretariat Divisions consisting of 127 Grama Niladhari Divisions and Kilinochchi District has four Divisional Secretariat Divisions consisting of 95 Grama Niladhari Divisions.

Canadian firm to supervise road construction from Ambepussa to Dambulla

The government has received a US$ 100 million loan from the International Development Association (IDA). A part of the proceeds of this loan is to be utilized for the rehabilitation and improvement of the road from Ambepussa to Dambulla (90.5km) on the Ambepussa - Kurunegala - Trincomalee A-6 road.

On a proposal by the President, in his capacity as the Ports and Highways, Minister Cabinet decided to award the contract for the supervision and the consultancy services to the project of M/s Lavalin International Inc. Canada for US$ 723,000 and Rs. 178,009,500.

New building complex for Rajarata University Agriculture Faculty

The Rajarata University, which was established in 2001 at Puliyankulama, has five Faculties including the Agriculture Faculty.

The student population of the faculty is over 400. It is expected to increase the intake with the expansion of infrastructure facilities.

The proposal made by Higher Education Minister S.B. Dissanayake to construct a three storied building complex for this faculty at Rs. 143 million and to award the consultancy services to the State Engineering Corporation was approved by Cabinet.

The initial work of the project will be commenced with funds provided in 2001 and the balance construction work with funds provided from 2012 to 2014.