SRI LANKA NEW HOTEL INVESTMENT

(Reuters) - Sri Lanka expects $1.5 billion foreign direct investment (FDI) through its first tourist city project, that includes four five-star hotels comprising 2,300 rooms, the government said on Thursday.

The planned hotel city at an 80 hectare site in Katana, a coastal town 15 km from commercial capital Colombo, is the latest destination where the island nation aims to build infrastructure to accelerate its post-war tourism boom.

"The envisaged foreign direct investment for phase one is $1.5 billion," Media Minister Keheliya Rambukwella told reporters. "The project will comprise of four five-star hotels with a total number of 2,300 rooms, exhibition and convention centre, (and) two shopping malls."

On Wednesday a senior minister told parliament Sri Lanka is in discussion with seven hotel chains including Claridges, Six Senses and Four Seasons to build large five-star hotels.

In January Sri Lanka signed agreements with Hong Kong-based Shangri La Asia for a $500 million complex with high-end retail facilities, deluxe apartments and a 500-room luxury hotel in Colombo and a 300-room city resort on approximately 100 acres in Hambantota on the southern coast.

The end of the 25-year war in May 2009 has boosted the $50 billion economy's leisure industry, making it one of the most attractive sectors for investment due to the island's tropical climate that attract high-end western European tourists.

Sri Lanka's tourism industry has secured $1.2 billion foreign investment this year. (Reporting by Ranga Sirilal; Writing by Shihar Aneez; Editing by David Holmes)