Imperial Builders and Sri Lanka's Urban Development Authority will build alternative accommodation for shanty dwellers in Colombo's Slave Island district and re-develop some of the land.
A BOI statement said the project involves 525 perches near the Slave Island railway station and a mixed residential and retail development on 107 perches of land purchased from the UDA facing Akbar Mawatha.
The statement quoted Naveed Hussain Lakhani, chairman, Imperial Builders (Pvt) Ltd as saying that residents will remain their present accommodation until the relocation towers are being built in 9-10 months.
"We can see how investment can bring about better housing to some citizens living in the Slave Island area of the city," BOI chairman MMC Ferdinando said.
"In addition, FDI (foreign direct investment) has also the potential of transforming Colombo into a modern and well planned city by the introduction of modern construction, as stipulated in the second phase of this project."