The Kalpitiya coastal stretch, located along Sri Lanka’s west coast, has long been touted as a prime location for tourism development. However, the transformation of the area into a tourist hub has faced repeated delays, with the Sri Lanka Tourism Development Authority (SLTDA) under mounting pressure to address these challenges.
While some progress has been made, the development of the region is far from reaching its full potential, prompting calls for decisive Government intervention.
Kalpitiya’s development as a major tourist destination began in earnest with the SLTDA’s acquisition of over 2,000 acres of land across 12 islands in the early 2010s. Initially allocated as free grants for tourism development, the aim was to establish luxury resorts and enhance the country’s tourism offerings.
However, by 2022, only 668.69 acres across 10 islands had been leased to seven companies, with none of these investors commencing development activities. Audit reports from the SLTDA highlighted the failure to collect lease payments amounting to Rs. 93 million from 2018-2024, further compounding the slow pace of development.
According to SLTDA Deputy Director General Upali Ratnayake, the development process has been stalled due to delays in obtaining environmental and coastal conservation approvals. He noted that approvals for such large-scale projects typically took six to nine months.
“The Environmental Impact Assessment (EIA) is a comprehensive process, which we have requested the Central Environmental Authority (CEA) to look into and streamline while respecting both environmental sensitivity and development interests,” he said.
Conflicts with local fishing communities have further delayed progress. Ratnayake pointed out that two islands remained to be leased, with discussions ongoing regarding residents currently occupying key locations.
“These are the most prominent spots for tourism, but people are already living there. We want to resolve this amicably and the Divisional Secretary is working towards a solution,” he added.
The Kalpitiya development plan, which was envisioned to guide the region’s development, remains largely unfinished. Key infrastructure such as jetties, power plants, and waste treatment facilities are still lacking, making it difficult for the region to realise its tourism potential.
Moreover, the plan for the development of the Kalpitiya town and two other islands, Palliyawatta and Muthuwal, remains incomplete. A separate plan for eight islands covering 1,845.48 acres also remains stalled.
Financial inefficiencies have also been highlighted in the audit reports, with funds allocated for the Kalpitiya Island Resort project remaining largely unutilised. Between 2020 and 2022, Rs. 17.6 million was allocated for the development of resort facilities, yet no progress was made towards increasing the region’s hotel capacity.
Ratnayake pointed out that these years were characterised by the Covid-19 pandemic and the economic crisis, questioning if anyone would have invested in Government infrastructure at a time when investors had been uncertain about feasibility. However, he assured that the private sector would drive investment forward.
Developed by the Urban Development Authority (UDA) in 2021, the Kalpitiya Urban Development Plan (KUDP) aims to create a comprehensive development framework for the region, which includes identifying zones for commercial, residential, and tourism-based development.
Meanwhile, the Kalpitiya Integrated Tourism Resort Programme (KITRP), designed by the Board of Investment (BOI), aims to transform the region into a sustainable resort area spanning 556 acres. The programme envisions the development of over 6,000 accommodation units, luxury hotels, villas, amusement parks, and even an underwater theme park.
With an estimated investment of $ 200 million, the KITRP aims to create a range of tourism-related facilities including a domestic airport, golf courses, botanical gardens, and more. The Government has also promised various incentives for investors involving tax holidays, exemptions from duties, and 30-year lease agreements.
Ratnayake pointed out that Sri Lanka needed to expand its tourism accommodation to meet its goal of doubling tourist arrivals. “The target is three million, but we can only accommodate 2.3 million. To attract high-end tourists and repeat visitors, we must expand into new areas, not just existing ones,” he noted.
He further emphasised that Sri Lanka had the potential to compete with the Maldives in luxury tourism, offering superior cultural, heritage, and wildlife experiences alongside premium accommodation.
The SLTDA has expressed hope that the KITRP would help meet the demand for 30,000 additional hotel rooms, as Sri Lanka seeks to double its tourist arrivals in the next five to seven years.
The success of wildlife tourism along the southern coast, particularly around the Yala National Park, presents a viable model for Kalpitiya’s development.
Ratnayake highlighted that a similar approach could be taken to strengthen wildlife tourism by linking Kalpitiya with the Wilpattu National Park. Since Kalpitiya serves as a potential gateway to Wilpattu, improved access could attract more eco-tourists seeking both coastal and wildlife experiences.
Currently, while Wilpattu is bordered by the sea, its main entrances are accessible only via land through Anuradhapura and Eluwankulama. If direct access to Wilpattu by the ocean is enabled, it will provide a significant advantage to Kalpitiya’s tourism industry, making it easier for visitors to explore the country’s largest and oldest national park, according to Ratnayake.
He noted that discussions on this matter had taken place prior to the Covid-19 pandemic. However, progress had stalled due to security concerns raised by the Navy, particularly regarding maritime access to Wilpattu. Moving forward, Ratnayake stressed the need to restart dialogues with key agencies.