Calcutta, Nov. 24: Tobacco-to-hotels major ITC is looking to make its first overseas foray in the hospitality segment — and Sri Lanka can be its first choice.

The company plans to build a premium green hotel under the Sheraton brand and has shortlisted the seafront of Galle in south-west Sri Lanka.

The land on which the eco-friendly hotel is expected to come up was initially offered by the Sri Lankan government to the China National Aero Technology Import and Export Corporation (Catic), a defence equipment manufacturer with interests in hotels and real estate management.

However, last month, the government had reportedly annulled the $500-million investment proposal and refused to sell the land to the Chinese firm.

Catic had already pumped in $54.5 million to develop the project, which was said to be one of the largest foreign direct investments in Sri Lanka.

Following this, the government has initiated talks with ITC to build a hotel and the land could be leased to them under a 99-year agreement.

A spokesperson for ITC told The Telegraph, “There has been expression of interest for building a premium green ITC hotel in Sri Lanka. But we would not be able to comment until we receive formal intimation.” The spokesperson confirmed that talks had taken place with the Sri Lankan government but did not divulge the amount of investment or the nature of the property.

Sri Lanka’s finance secretary P.B. Jayasundera had said the investment would be $450 million.

Meanwhile, the Sri Lankan government is reportedly negotiating with Catic and has offered it an alternative location.

ITC has over 100 hotels in more than 90 destinations. The company entered into a franchisee agreement with Starwood Hotels and Resorts Worldwide to form the ITC-Welcomgroup. The hotels under this brand are marketed worldwide by the Sheraton Corporation, which is part of Starwood Hotels and Resorts.