Sri Lanka has said five acres of land in Colombo's Galle Face beachfront, which is near the port, will be sold on a 99-year lease to India's ITC for 73.
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5 million dollars.
Chairman of state-run Sri Lanka Ports Authority, Priyath Bandu Wickrema said China Harbour will get a part of the reclaimed land on lease in return for their investment.
"We are giving a piece of the land on lease to them for the investment," Wickrema said.
"We might invest as well."
He said the share of investment will be decided on a valuation of the 500 acres of reclaimed land. All reclaimed land will be owned by the ports authority.
Wickrema said the reclamation may start in the first quarter of 2012.