Feb 16, Colombo: Sri Lankan authorities in collaboration with private sector have commenced a project to set up a cable car service in the scenic central hill town of Nuwara Eliya as a tourist attraction.

The cable car system would be set up between the Gregory's Lake Park and Single Tree Mountain in Nuwara Eliya.

Nuwara Eliya, known as "Little England" is one of Sri Lanka's major tourist hot spot and the government aims to boost tourism in the area.

Nuwara Eliya Mayor Mahinda Dodampegama has signed a memorandum of understanding (MOU) for the project with the MLM Associates (Pvt) Limited at the Nuwara Eliya Municipal Council Thursday.

The initial work of the project will commence in April after a feasibility study which is to be prepared with the assistance of a foreign expert.

According to Milanka Gajanayake of MLM Associates (Pvt) Limited the project is expected to be completed by March next year.

The cable car project which was being considered by the Nuwara Eliya Municipality for 15 years is expected to help the Municipality to increase its alternative means of revenue.

Sri Lankan authorities are also planning to launch a cable car service from next year to the famous pilgrim destination Sri Pada peak in the central hill region.