A former rebel-held town in the north eastern coast of Sri Lanka will host the beach events of the Asian Youth Games in 2017, the Sri Lankan Tourist Board announced Saturday.

The southern town of Hambantota has already been selected as the venue for the Asian Youth Games and the announcement was made by Asian Olympic Council head Sheikh Ahamed Al-Fahad Al-Sabah this week.

The Tourist Board said that following this announcement, the government has decided to have the beach events in Mullaitivu where the final war between the Sri Lankan army and Tamil Tiger rebels took place three years ago.

"Benefits of these games should be equally shared by different parts of the island although Hambantota sports city will stage the main events. The beach games will boost the tourism drive and generate more economic activities when they are held in Mullaitivu. The anticipated visitation to Mullaitivu and rest of the region during the games will be an encouraging factor for potential investors who are looking for suitable locations for their developments," the Tourist Board quoted government legislator Namal Rajapaksa as saying.

The third Asian Youth Games in Hambantota in 2017 will be the biggest sporting event to be hosted by Sri Lanka.

The first Asian Youth Games was held in Singapore in 2009 and the second is scheduled to be held in Nanjing, China in 2013.