The government has said it needs to increase the island's room stock to 40,000 to cope with the anticipated influx of tourists.
Tourist arrivals have risen sharply after the island's 30-year ethnic war ended in 2009.
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About 150 homes have been identified and the tourism authorities were getting ready to convert them into suitable accommodation for foreign visitors, Nanayakkara said.
Deputy minister of economic development Lakshman Yapa Abeywardene said the government has set a target of getting 2.
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5 million tourists by 2016 and faces the challenge of accommodating them.
Owners of homes in areas with tourist attractions which r