Kalpitiya Island Tourism Development to be revitalized soon under new government
- 5opn1
- December 10, 2024
- Travel and Tourism
- Kalpitiya Island Tourism Development to be revitalized soon under new government
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Behind the News
The Sri Lanka Tourism Development Authority (SLTDA) faces mounting pressure to address significant delays in the development of Kalpitiya islands as a premier tourist destination.
Multiple agreements signed with investors, most of which expired by September 2024, have failed to yield any meaningful progress, prompting calls for government intervention.
The SLTDA first acquired 2,056.73 acres across 12 Kalpitiya islands in 2010 and 2012, with the intention of developing the area for tourism. By 2022, 668.69 acres across 10 islands had been leased to seven companies.
However, an audit report revealed that, despite these agreements, none of the investors had begun construction by the end of the 2022/2023 period. Furthermore, SLTDA failed to collect around Rs. 93 million in lease payments from 2018 to 2024.
Several factors have contributed to the slow progress, including delays in obtaining approval for water bungalows, conflicts with local fishing communities, insufficient island sizes, and inadequate infrastructure.
Although the SLTDA has attracted international investors for high-end island resorts, delays in approval procedures continue to stall the start of development projects.
Dr. Prasad Jayasuriya, Director of Tourism Planning, Development, and Investor Relations, highlighted the unique appeal of Kalpitiya, where the islands offer scenic sea or lagoon views. Despite leasing 10 islands to investors, two islands remain available for development.
Dr. Jayasuriya noted that successful projects could bring in up to US $500 million in investment and create 5,000 to 7,000 jobs. However, the lengthy approval process has deterred progress.
A significant challenge is the unclear authority over the water bodies surrounding the islands, particularly in the case of water bungalows.
Despite obtaining cabinet clearance for certain projects, the SLTDA has been unable to proceed with approvals for water-based structures, as it lacks ownership of the surrounding waterbeds.
In May 2023, SLTDA signed four additional lease agreements, but these projects also faced delays due to the ongoing issues with infrastructure and approval processes.
The lack of basic infrastructure, such as jetties, water supply systems, power plants, and waste treatment facilities, has further hindered development. Without these essential facilities, investors have struggled to move forward with their projects.
Additionally, the development of Kalpitiya town and two other islands—Palliyawatta and Muthuwal—has stalled, despite a master plan for these areas. Another plan for eight islands, covering 1,845.48 acres, also remains unimplemented.
Audit findings point to financial inefficiencies, with funds allocated for resort development during 2020-2022 largely unspent. Rs. 17.6 million intended to expand hotel capacity in the region saw no progress as of late 2022.
To address these challenges, the audit report calls for attracting more capable investors, expediting the approval processes, and providing the necessary infrastructure. It also recommends setting clear timelines for the implementation of the Kalpitiya Master Plan to ensure accountability and drive progress.
Kalpitiya holds immense potential as a key tourist destination, and immediate action is essential to overcome the current obstacles and unlock the area’s economic potential.
DMN
