Oct 11, Colombo: Sri Lanka's Board of Investment has signed an agreement with a Pakistani company Imperial Builders (Pvt) Limited of Pakistan to develop a land in the heart of Colombo and build housing units for the shanti dwellers occupying the prime land in the city.

Under the agreement, the Imperial Builders will launch the mixed use development project at Slave Island at a cost of US$ 60 million.

The government with the construction of the Slave Island Housing Complex aims to improve the living standards of the shanty dwellers and transform the congested Slave Island area to a modern residential and commercial zone.

The investment will maximize the economic worth of the land and the surrounding area in the near future, the government said.

According to the Chairman of Imperial builders (Pvt) Ltd. Naveed Hussain Lakhani, the company has worked out a strategy to keep the dwellers at their original places until their relocation towers are progressed in 9-10 months.

"This will make a re-development one of its kind to win the hearts of hundreds of families living there currently," Lakhani has said.

The project will be launched at a 1.5 acre land purchased by the Urban Development Authority to build mixed retail and residential towers.

The low cost residential towers comprising four individual blocks of multiple stories will include housing units with limited facilities such as children's play area, parking and a super market.