COLOMBO, March 15, 2007 (AFP) - A major Sri Lankan firm plans to reclaim an area of land the size of downtown Colombo in a 500-million-dollar project to expand the nation's main port, a minister said Thursday.

Sri Lanka conglomerate John Keells Holdings Group will lead the 450-acre (182 hectares) land reclamation project, investment minister Sarath Amunugama said.

"This project is expected to cost around 500 million dollars," he said without saying when it would begin.

The Colombo harbour, home to South Asia's busiest container port, is being expanded to accommodate bigger ships.

The new project will extend around the southern part of the harbour.

John Keells, with interests in financial services, leisure, technology, food and beverages and property development, currently operates a terminal at the port.

Amunugama said the project is part of efforts to boost Sri Lanka's annual foreign direct investment more than sixfold to four billion dollars in 2007, from 600 million dollars last year via investments in technology and infrastructure.

Suspected Tamil Tiger rebels staged an unsuccessful attack on the Colombo port in January, the first in a decade, with the guerrillas trying to reach into the Rangala naval base located in the middle of the harbour.

The rebels have tried with varying success to target ports and military installations during their 35-year bloody campaign for a homeland for the Tamil minority, which has claimed over 60,000 lives.