• Approval delays hinder island development
• SLTDA seeks to expedite bureaucratic process

Even though the Sri Lanka Tourism Development Authority (SLTDA) has found International Investors for the Kalpitiya island resort projects, the delay in approval procedures are hindering the commencement of a high-end Island resorts project, The Daily Morning Business learns.

Speaking to The Daily Morning Business, SLTDA Tourism Planning, Development and Investor Relations Director Dr. Prasad Jayasuriya said that Kalpitiya is another unique property where the Authority owns 12 islands.

“The islands are located in a unique setting where the properties either have a sea view or a lagoon view, but unfortunately there are challenges within this development,” Dr. Jayasuriya said.

“Even though 10 out of the 12 islands have already been leased out to seven investors, there are still two islands that offer potential to investors,” he added.

He pointed out that if these projects move forward, the total investment could reach $ 500 million, and create 5,000 to 7,000 direct and indirect jobs.

“The major challenge is approval procedures since it will discourage the investors. The seven investors who have leased out the property for four projects are still in the approval stage,” he said.

He stressed that the current approval process is challenging, as when people are looking into constructing water structures or water bungalows, there’s a huge question as to who the approving authority is, “because unfortunately the SLTDA doesn’t have ownership of the water bed or the water body.”

“This has resulted in having to go here to there seeking approval. We have even gone up to the cabinet and got clearance, but again we were told that while the cabinet approval exists, we cannot use that as approval to use the water body,” he said.

According to SLTDA, however, they were told that they have to get the approval of Lands Commissioner General, and SLTDA may have to lease it out to either SLTDA or the investor.

Currently, they are in the process of discussing with the land commission, and Dr. Jayasuriya has requested a report from the divisional secretary on this matter.

Once it is obtained, “hopefully they may be able to lease out the waterbed for some time, and they will have to sublease it to the relevant investors,” he explained.

Moreover, out of the 10 islands, three islands are facing sea erosion, where parts of the islands have a possibility of going underwater from time to time.

Although the island resorts concept is new to Sri Lanka, it’s a common issue in countries like the Maldives, where they own thousands of water resorts.

Interestingly, one of the investors is a Maldivian who has taken up three of these islands and also owns a property in Pasikuda; Sun Siyam Pasikuda.

From the beginning, they have asked for the approval to fill sand and strengthen the islands to protect them from sea erosion. This would assure the islands don’t go underwater, Jayasuriya stated.

Although SLTDA has written to the Coast Conservation Department regarding the matter, they have responded saying the situation is sensitive and requires time for proper study which has delayed the process.

While the SLTDA owns the islands, they don’t have the authority to approve most of these projects, and have to work with other government authorities.

SLTDA has two islands for which they are looking for investors.

Baththalangunduwa is one of them; it spans 292-acres and is located approximately 40 km from the mainland. About 10 to 15 acres of this island are inhabited by a small community. Therefore, the remaining area is up for investment.

Due to its remote location from the island, it might be perfect for camping sites or eco-friendly structures. SLTDA is looking for a larger number of investors than a single investor for this island project.

Moreover, their goal is to develop a more affordable option that is akin to Maldivian island resorts, particularly for the local travelers.

The second island, Uchchamunai, is much larger, at around 1,000-acres. Around 300 families live there. SLTDA is looking for a large investor to develop an integrated resort on this island.