Hong Kong based Shangri-La announced the purchase of 10 acres of government land in January 2011 and is targeting to open the property in mid-2015. Shangri-La Asia Limited will invest 408 US$ million on this hotel project.

Shangri-La Hotel, Colombo will be located between the Galle Face Green promenade and Beira Lake, with uninterrupted views of the Indian Ocean.

Shangri-La Hotel, Colombo will be built according to sustainability guidelines, with 661 rooms offering some of the largest accommodation in town at 45 square metres to 55 square metres (484 square feet to 592 square feet). This also includes 43 suites ranging in size from 90 square metres to 225 square metres (968 square feet to 2,421 square feet).

A wide range of restaurant concepts will be presented and the meeting facilities will be among the largest in Colombo, with over 4,780 square metres (50,598 square feet) of function space spread over three floors.

Shangri-La is also planning to construct it's second hotel in Hambantota on the southern coast of Sri Lanka which is planned to open in 2013, on approximately 145 acres of land with a 315 rooms with a  investment of 120 US$ million.