Kalpitiya island leased to Swiss company for 30 years

Uchchimunai Island, the second-largest of the 14 islands off the shore of Kalpitiya, Puttalam, North Western Province has been given on lease for 30 years to a Switzerland-based company, which plans to develop an “environmentally friendly resort” on the island.

Speaking to The Morning, Sri Lanka Tourism Development Authority (SLTDA) Director General Dhammika Wijesinghe told The Morning yesterday (12) that the project proposal for the said development was approved by the SLTDA’s Board of Directors in 2020. 

“The deadline for the signing of the lease was Wednesday (11) and the Swiss company came to Sri Lanka to do it. There were some industry heads who had concerns about whether the SLTDA Board is still valid, as there is no Ministry of Tourism anymore, but we got confirmation from the Presidential Secretariat’s Legal Affairs Division that the Board is still valid under the Constitution. The total initial investment of the company at the island is $ 417 million,” said Wijesinghe. 

However, the All-Ceylon Tourism Service Providers’ Association (ACTSPA) yesterday alleged that there are plans to sell the Uchchimunai Island to the said Swiss company. 

“Under this emergency law, when there is a curfew, there are plans to sell the Uchchimunai Island, which is a very valuable asset to the tourism industry, to a Switzerland-based company. This was started in 2000, and in 2019, the value was estimated at $ 417 million. There is no Cabinet Minister of Tourism and no one responsible, but the authorities are selling the most valuable assets to foreigners. We are not going to allow this to happen. Is this how you plan to rule the country, by selling it bit by bit?” questioned the ACTSPA Vice Chairman Priyantha Karunathilaka at a media briefing held on Wednesday. 

“Nobody knows what this agreement is. No one from the industry is involved. There are about 200 people living on that island, and there is a school as well. Give it to local developers. These are assets that we can use to bring dollars into the country. Why are they being sold?” 

However, Wijesinghe said that the project proposal involves a community development programme for the fishing community living in the island as well.