- SLTDA evaluates two new investment proposals
- Chairman emphasises on timely development
- Chinese interest in Battalangunduwa Island
The much-maligned FDI project involving an alleged investment of $ 417 million to develop an ‘environmentally-friendly resort’ on Uchchimunai Island by a Switzerland-based company has been cancelled, according to the Sri Lanka Tourism Development Authority (SLTDA).
Meanwhile, the SLTDA is currently evaluating two other investment proposals by potential investors interested in developing the island.
Speaking to The Sunday Morning Business, SLTDA Chairman Priantha Fernando stated that the $ 417 million project to develop an ‘environmentally-friendly resort’ on Uchchimunai Island, the second-largest of the 14 islands off the shores of Kalpitiya, Puttalam in the North Western Province, had been cancelled due to the failure of the Switzerland-based company to commence the development process within the stipulated time.
“The project was cancelled because they didn’t deliver on time. They were required to commence the development process within a particular time period. If they don’t start within the given timeframe and make the deposit payment, we are entitled to cancel it and open it to other investors. They can’t just hold on to it. Otherwise people can just block off the islands and go looking for other investments,” he stated.
Commenting further, he stated that the SLTDA had received two investment proposals in respect of the development of the Uchchimunai Island and that they were currently being reviewed by the SLTDA.
“One is from an Indian investor that is being evaluated, after which it will go before the scoping committee. The other proposal involves a collaboration between a foreign and a local investor. However, it is an island of over 1,000 acres, so we can easily accommodate one or two more projects in Uchchimunai,” he added.
He stated that the SLTDA had also received interest from a Chinese investor for the development of the Battalangunduwa Island off the shore of Kalpitiya, adding however that discussions were still in the early stages.