Hong Kong-based resort operator Shangri-La Hotels and Resorts is to develop a multi-use complex in Colombo, Sri Lanka.

The project - comprising a 500-room hotel due to open in early 2014, retail facilities and deluxe apartments - will occupy six acres of government land facing the city's Galle Face green promenade and marks Shangri-La's entry into Sri Lanka. The company is also planning to develop a second property, a 300-room city resort on a 100 acre site in Hambantota on the southern coast of the Indian Ocean island which is scheduled to open in 2013.

Greg Dogan, president and CEO of Shangri-La International Hotel Management said: "Sri Lanka is a country of unsurpassed natural beauty, rich in cultural heritage. Above all it is well recognised for its warm and hospitable population. "The local government is fully committed to rebuilding the economy following the end of three decades of conflict and we believe that Shangri-La will be able to assist in positioning the country as a prime global tourist destination."