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"The new cinemas would attract more customers to the Complex, especially at off peak times with the increased foot fall benefitting other tenants as well," chairman R Selvaskandan told shareholders in the annual report.
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"It is expected that the project would take about 6-9 months to complete and the new cinemas would be ready for operation in the latter part of the year 2011/12."
The space would be rented to a cinema operator, he said. The Majestic City already has one cinema.
The expansion would cost 75 million rupees and bring in 12 million rupees in rentals a year, Selvaskandan said.
Sri Lanka has emerged from a 30-year war and tourist arrivals are rising. The state has cut taxes on electronics goods in the past year to encourage the island to be a shopping centre.
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Tenancy agreements which were renewed in 2010 had brought a 15 percent increase in rent.
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