The Board of Investment has signed an agreement with a tourism developer to assess and plan Sri Lanka's first large scale tourism zone.

The zone is to be located at a 200-acre site in the Katana Area, near the Bandaranaike International Airport in Katunayake.

The agreement entails a detailed analysis, feasibility planning and the fast track implementation of the infrastructure and legal arrangements to drive foreign direct investment into the project.

According to Government Media Department release, the project, known as Katana City, is planned to include 5-star hotels with over 2,500 rooms, multiple shopping centres, attractions, retail, parks and extensive entertainment.

The airport will be connected to the Katana City by a Monorail which will also be built by the developers.