Colombo, Nov 18 (IANS): A Chinese company has signed up to build two hotels and a golf course with investment exceeding $500 million on the sidelines of the Commonwealth summit here, a Chinese daily reported Monday.

China Harbor Engineering Co (CHEC) signed the agreements to build the golf course at a resort in the southern Sri Lankan town of Mattala.

The company will also construct a 250-room hotel and tax-free shopping complex also in Mattala, Sri Lanka's Airport and Aviation Services Executive Director Johanne Jayaratne told reporters.

The company built a $209 million international airport in Mattala funded by the Chinese government, which was opened earlier this year.

The Sri Lankan government hopes to convert the town into a tourist and investment hotspot.

The third project will be a 200-room transit hotel in Katunayake, which will also have a 1,000-car park and tax free shopping facilities, he said.

"A Memorandum of Understanding was signed between CHEC and the Airport and Aviation Services of Sri Lanka," he said.

The Commonwealth Business Forum took place in Sri Lanka ahead of the Commonwealth Heads of Government Meeting (CHOGM) to attract investment to the country.