Shangri-La Hotels increases investment in Sri Lanka hotel to $450M

The Shangri-La Hotels and Resorts revised the construction plan of its upcoming Sri Lanka property, increasing their investment in the hotel to $450 million, excluding the cost of the land and along with an increase of rooms from the initial 500 to 625. The hotel is to be built on 10 acres of land overlooking the Galle Face Green.

The land was initially bought in 2010 with a price tag of $125 million, and the approval for the construction was received in the same year. With the increase of rooms and a newer plan already paving the way for the new building, the deadline has also gone up, with hopes for the project to see completion in 2017, though the preliminary plan was to finish the project in 2015.

The proposal for the new project has already been approved and the tax concessions will remain the same. With the project seeing fruition, the Electricity Board (CEB) will also have to shift one of their high-tension cables which is getting in the way of the construction and therefore, there are discussions underway between the relevant authorities with regard to this.

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