By: Staff Writer March 10, Colombo (LNW): The ITC Hotel, opposite Galle Face Green in Colombo, a flagship BOI project, is expected to add to the city’s skyline and boost its appeal as a destination for both business and leisure travelers. Investment Ministry Secretary M.M. Nayeemudeen and Board of Investment Chairman Dinesh Weerakkody visited the ITC Hotel, on an inspection visit recently. ITC subsidiary WelcomHotels Lanka Ltd., Managing Director Subi Kishore George and General Manager Sujeet Kumar welcomed the delegation. Official sources said the Indian government has approved ITC Ltd’s plan of investment in the Sri Lankan hotel sector as it hopes that the presence of ITC in Sri Lanka will be a significant contribution towards promoting Foreign Direct Investment and tourism in the country. A senior government official said that the conglomerate which has assets from tobacco to hotels will invest US$ 300 million to build an up-market luxury hotel with the world-renowned Sheraton brand name on land that was earlier assigned to CATIC from China. Wide-ranging tax incentives and the proposed tax exemptions will be issued to ITC after receiving the full payment of US$75 million, he said ITC Colombo One Hotel and Residences was  a new luxury development in the heart of the capital city Colombo, the hotel is poised to become a landmark in the city, attracting foreign visitors and contributing to the economic development of the country.. A Kolkata-based Indian public conglomerate, ITC Limited begins the construction work of a multi-faceted mixed use development project in a prime land in the Sri Lankan capital Colombo, a top official said. The Welcome Hotels Lanka (Pvt) Ltd, a newly incorporated ITC unit in Sri Lanka has paid US$ 73.5 million an up front payment for a 99 lease of a 5 acre block state land near Colombo’s main Galle Face beachfront. ITC Limited ha spledged to invest US$ 140 million to build the proposed complex consisting of luxury hotels, high quality residencies and shopping malls at a block of land of the property of former Army Headquarters premises facing the Gall Face Green in Colombo, The Cabinet of ministers has granted this project a Strategic Development Project status providing necessary tax exemptions. The firm has been given a 10 year tax holiday starting from the first year of profits or three years after operations, the gazette notification revealed. The firm will also get a tax concession of 6 percent or half the rate of tax for hotels (whichever is lower)within the next fifteen years.Up to 20 expatriate staff will be exempted from Pay As You Earn tax for five years . Interest on foreign loans taken for capital expenses, technical fees to consultants, management fees up to 3 percent of revenues, royalty and marketing fees up to 1.5 percent of revenue will be exempt from withholding tax. ITC is a diversified conglomerate that has a presence in Fast Moving Consumer Goods (FMCG) and Hotels among other businesses.The Company is the second largest hotel chain in India with over 100 hotel.