On a proposal by Economic Development Minister Basil Rajapaksa a large scale integrated tourism city in Katana which will be known as 'Katana City' on a state land of 80 ha, in Katana.

The project will comprise four Five Star Hotels with a total of 2,300 rooms, exhibition and convention centre, two shopping malls etc.

The envisaged foreign direct investment for Phase I is US $1.5 billion.
A Memorandum of Understanding to conduct a feasibility study will be signed with Katana City Development (Pvt) Ltd, a member of the Asian Resorts and Consortium after legal measures.