Sri Lanka Tourism Development Authority reviews Kalpitiya islands for foreign investment
Daily FT: The Sri Lanka Tourism Development Authority (SLTDA) is reviewing the viability of the Kalpitiya islands for foreign investment, having commenced a process to make them more feasible for investors, including clearing all encroachments on the islands.
Speaking to The Morning Business, SLTDA Chairman Buddhika Hewawasam revealed that the authority had commenced the process of making the Kalpitiya islands more feasible for foreign investment.
He explained that some of the islands were being used by fishermen on a seasonal basis, raising the question of how a process could be developed to ensure the harmonious use of resources on the islands.
“The Kalpitiya lands have been open for investments for a while. However, some of those investments have failed to materialise due to many reasons. On one side, the investors themselves are having their own issues, and in certain cases, there are settlements and encroachments, which have made investments infeasible in those areas,” he said.
Hewawasam further stated that other than Baththalangunduwa, the other Kalpitiya islands did not have permanent settlements and were instead used by fishermen seasonally.
He said that the permanent settlements in Baththalangunduwa would be excluded and would not be impacted by the proposed investment development plans. The community will be permitted to continue residing on their lands.
The SLTDA Chairman added that the authority intended to complete the land clearance processes by the end of the year.
Hewawasam also pointed out that on some islands, the lack of infrastructure such as freshwater and electricity had been a bottleneck for investment. The Government is accordingly taking steps to develop this infrastructure in order to make investment feasible.
Responding to queries on whether the investment agreements entered into with investors under previous regimes, which had not yet been operationalised, had been cancelled, he revealed that they had not been cancelled as yet. Any such action would be taken only after a comprehensive review process, he said.
He added that once the Government sorted out the settlement issues, and provided the investments were in proper order and the investors remained interested in commencing their projects, the authority would support them in breaking ground.
OSL take:
Sri Lanka’s expanding tourism industry is creating a growing pipeline of business/investment opportunities for foreign businesses/investors, with the Sri Lankan Government seeking to unlock new destinations and attract investment into tourism-related infrastructure and services. The SLTDA’s review of the Kalpitiya islands highlights the potential to develop new tourism assets while addressing land-use and other challenges that have previously constrained investment. Creating a more investor-friendly environment in areas such as Kalpitiya could encourage greater participation by international hotel groups, resort developers and other tourism operators. Beyond accommodation, business/investment opportunities are emerging across a broad range of related sectors, including eco-tourism, marine and adventure tourism, wellness, transport, food and beverage, entertainment, tourism technology and supporting infrastructure. Investments that promote sustainable and community-based tourism could be particularly attractive as Sri Lanka seeks to diversify its tourism offering. With tourist arrivals expanding and the country possessing a diverse range of beaches, islands, wildlife, heritage and cultural attractions, Sri Lanka offers considerable room for new tourism products and services. As the Sri Lankan Government works to improve investment feasibility and develop underutilised tourism destinations, foreign investors have an opportunity to establish a stronger presence in a sector with significant long-term growth potential.
| Article Code : | VBS/AT/20260819Z_4 |