BOI signs agreement to create worldclass tourism hub

The Board of Investment of Sri Lanka (BOI) has signed an agreement with tourism developer Katana City Developments (Pvt) Ltd to assess and plan Sri Lanka's first large scale tourism zone, in the Katana Area adjacent to the Bandaranaike International Airport.

The Airport will be connected to Katana City by monorail which will also be built by the developers.

The Agreement entails the detailed analysis, feasibility planning and the fast track implementation of the infrastructure and legal arrangements to drive foreign direct investment into the project. The project will be known as Katana City.

The project will include hotels, attractions, retail, parks and extensive entertainment with all components integrated into a world class master plan and enabled for success with suitable operating permits, tax benefits and transport connectivity.

BOI Chairman and Director General, M M C Ferdinando said the "Katana City will deliver an exciting tourism offering for high volume arrivals, and the result will be a major step up in job creation (estimated to be over 10,000 when fully developed), tax revenue and tourist arrivals for this important sector".

Katana City Developments (Pvt) Ltd has been promoted by a consortium headed by Asian Resorts and Casinos Singapore (ARC), a specialist large scale tourism project developer.

Katana City's Director, Prashanth Koorapati said "this project has been planned to put Sri Lanka's tourism offer on par with Singapore and others in this region - and additionally we are planning to make sure that the concept adheres to a high standard of eco sensitivity and defines itself to show the best of Sri Lanka, not just copy previous projects completed elsewhere".

The components of the project will be developed on a site of 200 acres close to the airport. Hotels with over 2,500 rooms, multiple shopping centres and other leisure and commercial elements will be built, a spokesman said " In due course the Katana City will have over $3bn in construction and investment. Katana City Developments and the BOI have agreed to fast track the provision of legal conditions that will allow the project to be properly feasible and to be implemented quickly.

The BOI recognises that Sri Lanka's tourism sector is a major focus for growth and that the concept of an integrated resort development at Katana City will create faster growth with its attendant benefits for Sri Lankans.

The Katana City project is intended to be Sri Lanka's first impression for tourists arriving and also to warmly welcome local residents to benefit from the many attractions it will contain.