COLOMBO, July 4 Honk Kong based Shangri La Asia
(0069.HK) on Monday said its Colombo luxury hotel project will
be completed by end 2014, later than the scheduled date in
early that year due to complexity of the design.
Shangri La in January said the development in Colombo will
be a multi-use complex with high-end retail facilities, deluxe
apartments and a 500-room luxury hotel and expected to open in
It has also planned to develop a second property, a
300-room city resort on approximately 100 acres of land in
Hambantota, on the southern coast of Sri Lanka, scheduled to
open in 2013.
The total investment for both projects has been estimated
at $500 million.
Madhu Rao, the executive director and chief financial
officer of Shangri La Asia on Monday said the Colombo hotel
project has not yet started and it will need three years to
complete from the date of digging the ground.
"Colombo will take another two-three months, because
designs are much more complicated here," Rao told Reuters in
the sideline of a national economic forum in Colombo.
"It's very very complex. A lot of integration and various
elements have to take place. So till we are satisfied that all
the design elements come into place like we wanted, we can't
start foundation work. Colombo will be 36 months from the time
we start digging the ground."
Rao said the company expects to start Hambantota project in
August and complete its first phase by 2013.
Sri Lanka's tourism sector has already secured $1.2 billion
investment including from Shangri La due to the post-war
tourism boom in the Indian Ocean Island nation. [ID:L3E7HO28Q]
"We are impressed with the potential," Rao said referring
to tourist attraction towards Sri Lanka. "Honestly I tell you,
we will bring in quality products and see people coming in a
(Reporting by Shihar Aneez; Editing by Diane Craft)