The project has been proposed for the islet of Iramuthiv, off the coast of Kalpitiya where 10 islets have been offered to investors by the country's tourism development authority.
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About 60 acres of Iramuthivu islet, which is spread over 100 acres, will be used for the leisure project.
A Canada based firm is also in talks for a 300 million dollar project in another islet.
Sri Lanka has seen a steep rise in tourist arrivals after the end of a war, resulting in a tourism boom.
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