SLTDA awards water bungalow project on islands to Sun Resort Lanka
The Sunday Morning: The stalled water bungalow project in the islands of Vellai I, II, and III awarded to Sun Resort Lanka (Pvt) Ltd. is yet to commence despite receiving all necessary regulatory approval required for commencement earlier this year, according to the Sri Lanka Tourism Development Authority (SLTDA).
Speaking to The Sunday Morning Business, SLTDA Chairman Priantha Fernando stated that the unique water bungalow project in the islands of Vellai I, II, and III was set to commence construction following the granting of necessary regulatory approval.
The Vellai islands are part of the 14 islands off the shore of Kalpitiya, Puttalam in the North Western Province.
Commenting further, he stated: “The commencement of this project was stalled due to delays in obtaining clearance. The necessary clearances have now been granted. However, the investor is yet to commence construction.
“Since the delay was due to the failure of other agencies to grant the necessary approval, we have not specified a deadline to commence construction. However, we are now pushing the investor to start the project and expect them to commence within a reasonable time, failing which we will call for proposals again and proceed with another investor.”
According to the SLTDA Annual Report, despite its request for the investor to first develop the facilities on land, the investor had insisted that full approval for the water bungalows be received in order to commence the full development at once.
Commenting on the development project in the Ippantive Island awarded to Qube Lanka Leisure Properties (Pvt) Ltd., Fernando acknowledged that it had received some opposition from the fishing community, who claimed that their day-to-day activities were being disturbed.
Thereafter, a solution had been reached following negotiations. However, the investor had not been in agreement with the solution and had demanded a land swap for the project.
“If I remember correctly, the investor wanted to swap it with another land in Nuwara Eliya. However, we don’t own land in Nuwara Eliya to give them,” Fernando stated.
He revealed that should the investor persist in delaying the project, the SLTDA would be compelled to view it as a breach of contract and would then be required to invite proposals from new investors, leading to Qube Lanka Leisure forfeiting all payments made to the SLTDA thus far.
Fernando stated that the investor had been well aware of this when entering into the agreement: “They were required to reach an understanding with the local communities and to ensure that their welfare would be taken care of. It is part and parcel of the agreement.”
OSL take:
Sri Lanka’s tourism industry is one of the fastest growing sectors in the country with a steady growth in tourist arrivals to the country. The country’s tourism industry was adversely affected by the global pandemic and the economic crisis faced by the country. However, the industry is back on the growth path with even international airlines increasing the number of flights operated to Sri Lanka. There has been an expansion in the business/investment opportunities in Sri Lanka’s tourism industry, especially in the leisure and hospitality sectors, with the growth in the tourism industry. The growing business potential can be seen by the interest shown by foreign leisure brands to invest in Sri Lanka’s tourism industry. Even the businesses currently in operation in Sri Lanka’s tourism industry, are engaged in expansion programmers to accommodate the growth in the industry. The many promotional campaigns carried out by the local authorities in key tourist source markets and the exposure received by Sri Lanka in the international media as a must visit tourist destination have also helped boost Sri Lanka’s tourism industry. Foreign businesses/investors could therefore explore the growing business/investment opportunities in Sri Lanka’s tourism industry, especially in the leisure and hospitality sectors as well as in the setting up of supplementary infrastructure facilities.
| Article Code : | VBS/AT/20230810/Z_2 |