SLTDA moves to reclaim underutilised tourism lands
The Morning: Many of the lands allocated to prospective investors remain underdeveloped to date due to the selection of investors lacking the requisite financial capabilities and failure to remove encroachers before granting land, the Sri Lanka Tourism Development Authority (SLTDA) reveals.
Speaking to The Sunday Morning Business, SLTDA Chairman Buddhika Hewawasam noted that numerous lands allocated to investors by the authority remained underutilised. As a result, the authority is presently reviewing the agreements with the respective investors.
He further stated that the SLTDA would be meeting with the investors to determine the exact reasons behind their failure to develop the lands given.
“We are going to take a policy decision regarding all lands that are currently being underutilised by the investors who took them.
“Certain lands had been given without clearing the encroachments that had taken place previously. Some of the lands have actually been taken by investors who are not competent enough to build anything up until now,” he added.
Hewawasam admitted that it appeared that, in certain instances, land had been granted to investors who did not have the financial capabilities to carry out the respective project.
However, he acknowledged that the previous administration of the SLTDA also bore a degree of responsibility for the prevailing circumstances.
“If it’s a tourism development project, there are regulatory grounds permitting action to be taken against them if the development doesn’t commence within two years. However, despite this, no action has been taken, nor have the lands been utilised,” he noted.
Hewawasam further revealed that many of these lands had been allocated under 30-year lease agreements, yet nearly a decade had elapsed without any tangible development taking place.
He pointed out that if Sri Lanka wished to achieve its tourist arrival targets, it was vital that these properties were developed.
“Our aim is to give our lands to proper investors who can contribute to the tourism industry by undertaking these developments.
“On one hand, the improper utilisation of these lands means that tourism revenue will be affected, while on the other hand, we will not be able to attract tourists to these areas because of a lack of accommodation,” Hewawasam stated.
Accordingly, he claimed that once they reviewed the agreements relating to these underutilised lands, steps would be taken to reacquire them and to organise a transparent process to attract new investors.
OSL take:The steady growth in Sri Lanka’s tourism industry and the ongoing expansion has opened up many business/investment opportunities in the industry as well as related sectors. The increasing foreign travelers to the country, the recognition of Sri Lanka as a must visit tourist destination and the expansion in the tourism concepts presented by the country have all added to the overall expansion of business/investment opportunities in the tourism industry and related sectors. The expanding opportunities range from the development of infrastructure and supplementary infrastructure facilities required to meet the increasing demand and growing tourism concepts as well as in the leisure and hospitality sectors. The interest shown by international leisure and hospitality brands as well as the expansion programmes undertaken by local businesses in the leisure and hospitality sectors are indicative of the growing business potential in Sri Lanka’s tourism industry. It is in such a backdrop that the Sri Lankan government is also looking at reclaiming underutilized prime locations to develop as tourist destinations creating more business/investment opportunities. With the country showing a strong growth and business potential in the tourism industry and related sectors, foreign businesses/investors could confidently explore the expanding business/investment opportunities in the industry.
| Article Code : | VBS/AT/20250620/Z_1 |