• SLTDA sets Q3 2024 deadline for stalled Kalpitiya island projects
• Investors face lease cancellations if development fails to commence
• Infrastructure improvements planned for Kalpitiya tourism development

The Sri Lanka Tourism Development Authority (SLTDA) has warned the selected investors of the stalled investment projects in the Kalpitiya islands to commence development activities by the end of the third quarter of 2024, failing which the respective lease agreements will be cancelled.

Speaking to The Sunday Morning Business, SLTDA Chairman Priantha Fernando stated that the investment development activities in the 14 islands off the shore of Kalpitiya, Puttalam in the North Western Province had not progressed as anticipated.

He added that the SLTDA would pressure the chosen investors to commence development activities as soon as possible.  

Commenting further, Fernando stated that the authority had been accommodating lapses thus far due to the situation in the country. However, he warned that if the chosen investors failed to commence development activities by the end of the third quarter of this year, the SLTDA would be compelled to step in and examine the issue more seriously at that juncture. 

He added: “Of the many islands in Kalpitiya, all except two have been allocated to investors for development purposes, but the process has been slow. These were given even prior to Covid. During the Covid times there was nothing happening there. Now there is renewed interest, they are returning, and we are exerting pressure on them – develop, or we will cancel the lease.”

Accordingly, Fernando revealed that if the chosen investors did not commence development activities in their respective islands by the end of the third quarter of the year, the SLTDA would step in and cancel the lease agreements and grant the islands to alternative investors who were ready to go ahead with development activities immediately.  

He further revealed that the blueprint for tourist development in Kalpitiya envisaged significant investment in developing the requisite infrastructure to accommodate tourism-related plans for the region. However, due to the economic crisis in the country, the Government is not in a position to make the necessary capital investment to facilitate such infrastructure development.

Fernando also revealed that the necessary approvals had been received and that the SLTDA was now ready to recommence the Kalpitiya tourism development plans soon.

Accordingly, he stated that over the next 6-12 months, the development of the basic infrastructure in the region, such as sewage treatment plants and drainage systems, would commence.