As a pilot project under the Virtual City Creation Project, the historic city of Kandy, which includes the UNESCO World Heritage Site of the Sacred Sri Dalada Maligawa (Temple of the Tooth Relic), has been identified for development under the name "Virtual City in Kandy."

As the first phase of this pilot project, 58 locations have been identified as prioritized sites centered around the Kandy city’s tourist attractions and tourism assets. The second phase of the project plans to technologically recreate 20 places within the historic precinct of the Sacred Sri Dalada Maligawa and other sites of historical and tourism significance associated with it.

After Conducting an evaluation of the production capacity and technical capabilities of the organization which develops the Virtual City in Kandy, as well as their previous production works conducted, the Ministry of Digital Economy has recommended Sri Lanka Telecom as the appropriate institution to undertake the relevant tasks.

Accordingly, using the provisions allocated under the Clean Sri Lanka project, the Ministry of Foreign Affairs, Foreign Employment, and Tourism presented a proposal for selecting Sri Lanka Telecom to carry out the production activities of the Virtual City in Kandy project. This proposal has been approved by the Cabinet of Ministers.