By: Staff Writer
January 20, Colombo (LNW): The Sri Lanka Tourism Development Authority (SLTDA) is facing mounting pressure to address the significant delays in developing the Kalpitiya Islands as a major tourist destination.
Despite agreements signed with investors, most of which expired by September 2024, no tangible progress has been made.
This has led to growing calls for the government to intervene decisively and facilitate the much-needed development.
In 2010 and 2012, the SLTDA secured a total of 2,056.73 acres across 12 islands in Kalpitiya as free grants for tourism development.
However, by 2022, only 668.69 acres on 10 islands had been leased to seven companies.
Despite the signing of agreements, none of these companies initiated development activities by the close of the 2022/2023 period, as confirmed by an audit report.
Even more concerning, the SLTDA failed to collect lease payments amounting to approximately Rs. 93 million from these companies between 2018 and 2024.
Several challenges have contributed to the stagnation of the Kalpitiya development project. Delays in obtaining approvals for water bungalows, disputes with local fishing communities, the limited size of the islands, and the lack of infrastructure have all hindered progress.
In May 2023, SLTDA signed an additional four lease agreements, but these have also struggled to move forward due to ongoing infrastructure issues and delays in securing necessary approvals.
A critical issue lies in the absence of basic infrastructure, which has significantly impeded progress.
Despite the Kalpitiya Master Plan outlining essential infrastructure requirements such as jetties, water supply systems, centralized power plants, waste treatment facilities, and waterfront amenities, none of these have been implemented.
This lack of infrastructure has created considerable operational challenges for investors, further delaying the region’s development into a viable tourist destination.
Moreover, the development of Kalpitiya town and two additional islands, Palliyawatta and Muthuwal, covering 1,915.96 acres, remains incomplete.
A separate plan for the development of eight islands spanning 1,845.48 acres has also stalled, with no progress to report.
The failure to execute these proposals has prevented the realization of Kalpitiya’s full potential.
The audit findings also shed light on significant financial inefficiencies. Funds allocated for the Kalpitiya Island Resort project, which was intended to boost the region’s hotel capacity, were largely left unutilized.
Between 2020 and 2022, Rs. 17.6 million was allocated for resort development, yet no tangible progress had been made by November 2022.
Given these setbacks, the audit report urges SLTDA to attract more capable investors, streamline approval processes, and address infrastructure gaps to accelerate project development.
Additionally, it calls for a more clearly defined timeline within the master plan, to ensure accountability and track progress effectively.
Kalpitiya holds immense potential to become a key tourist destination, offering unique opportunities for sustainable tourism and economic growth.
However, this potential can only be realized through immediate action to overcome the existing hurdles.
By revitalizing the stalled projects and providing the necessary infrastructure and support, Sri Lanka can unlock the full economic benefits of this strategic initiative.
