Colombo (PTI): A Hyderabad-based company has bagged the contract to construct a 250 million dollar 70 storeyed building in Colombo, the tallest in Sri Lanka.

The foundation stone for the proposed highest building in Sri Lanka was laid by Prime Minister Ratnasiri Wickramanayake on Sunday.

The public-private partnership building project will come up in the premises of Sethsiripaya in Battaramulla in Colombo suburbs at an estimated cost of USD 250 million and will be constructed by Sutchi NEB Construction Company of India.

The project initiated by the Board of Investment (BOI) of Government of Sri Lanka will have administration, commercial and housing units, a BOI official told PTI, adding the project is expected to be completed in three years.

While 40 floors will be dedicated for commercial operations, 20 floors will be for residential purposes, the official said.

Speaking on the occasion, the Sri Lankan Prime Minister said peoples' only desire was to see an end to the scourge of terrorism that was obstructing all new projects, investments and the country's development programmes.

Wickramanayake said the government will meet the peoples aspirations of rooting out terrorism and bring peace soon.

Speaking at the function, Urban Development Minister Dinesh Gunawardena pointed out that India's contribution to such a mega development programme is another milestone in Indo-Sri Lanka ties.