Tourism land leasing model risks repeating Kalpitiya failures: Study

THE Government's drive to accelerate tourism investment through large-scale land leasing risks repeating the failures of earlier development efforts unless structural weaknesses in planning, infrastructure, and governance are addressed.

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This is according to a 'Policy Brief' by the Centre for a Smart Future, authored by researchers Ashanee Kottage and Tehani Chandrasena Perera.

The brief says the current framework for tourism land leasing has already produced stalled projects, idle land, and growing investor uncertainty in key development zones such as Kalpitiya.

The warning comes as the Sri Lanka Tourism Development Authority (SLTDA) has identified 3,000 acres of coastal land for tourism investment, promoting them as ready for development in an attempt to attract private capital and expand accommodation capacity.

The brief says the administrative streamlining of land leasing will not by itself produce viable tourism projects if basic constraints such as environmental suitability, infrastructure capacity, and community acceptance remain unresolved.

The Kalpitiya Integrated Tourism Resort Program (KITRP), launched in 2010, is cited as a case in point.

The project involved leasing 10 islands in the Kalpitiya peninsula to seven investors. The development plan envisaged around 5,000 acres of resort development, 4,000 hotel rooms, and between 15,000 and 18,000 direct jobs.

More than a decade later, most of these projects have not progressed.

Several island leases signed in 2010 remain undeveloped. In some cases, investors have not submitted investment proposals, while in others construction approvals remain pending or projects have been delayed by regulatory hurdles and disputes with local communities.