By Mandana Ismail Abeywickrema
The government is looking at handing over the seven acre land initially allocated to China National Aero-Technology Import and Export Corporation (CATIC) for a hotel project to Sheraton Resorts and Spas.
Government sources told The Sunday Leader that the government is looking at reaching an agreement with Sheraton Hotels and Spas to allocate the land that was taken back from CATIC in Galle Face.
The government recently decided to withdraw the controversial deal with CATIC over a dispute over the land ownership.
The relevant Cabinet paper requesting permission to negotiate a deal with Sheraton Hotels and Spas was to be presented to the Cabinet of Ministers last Wednesday.
However, a senior government minister told The Sunday Leader that the Cabinet paper was not submitted to the Cabinet last week.
The Cabinet meeting last week was presided over by Prime Minister D. M. Jayaratne and not by President Mahinda Rajapaksa.
The senior minister said the Cabinet paper was likely to be presented when the President presides over the Cabinet meeting.
The government however is yet to finalize the amount and the terms of the transaction.
The government has also allocated a 10 acre land in Galle Face to Shangri-La Asia to set up a hotel complex after receiving US$ 125 million.
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