• Regions zoned based on well-determined USPs
• Community-inclusive development priority: UDA NWP Director
• Not against tourism projects: Kalpitiya residents

By Sarah Hannan “Are we about to lose access to scenic sites? Have there been movement restrictions placed on our day-to-day activities as we make way for rapid development?” These are questions that the residents of Kalpitiya are raising these days, given the increased interest by investors and property developers descending upon the otherwise-quaint peninsula in the North Western Province of Sri Lanka. This recently-popularised tourist hotspot is home to a coal power plant, several wind power farms, salterns, lagoon fisheries, agricultural produce, kitesurfing schools, and various other activities that are pushing experiential tourism to the digital nomads of today. For those who visit the area, the already-established resorts will provide the experience of a beach resort in the Maldives or Indonesia. The geolocation of the peninsula provides panoramic views that can capture the sunrise and sunset once atop a rooftop of a lagoonside or beachside cabana. In terms of ingredients for holiday meals, all products can easily be sourced locally, with agro-produce being cultivated in the area. That itself provides a good ground to develop any project that links to tourism and hospitality. Preparing for the season When The Sunday Morning visited the region, many of these establishments were preparing for the upcoming season that is set to commence next week. As in all other regions that are marked as tourism hotspots, Kalpitiya too has experienced a drop in tourist activity following the pandemic and now the ongoing economic and energy crises that Sri Lanka is facing. What we observed was that many of the older establishments had changed management or been vacated entirely as business continuity had become unsustainable. As we set off towards the area where several kitesurfing schools are set up, we met Anthony, who explained: “We do get local and foreign guests who come to get lessons from my son Susantha. These are his friends who have been routinely coming to Sri Lanka on holiday from the Maldives and this time they brought a few more of their friends along to learn to kitesurf.” According to Anthony, much of the land that is facing the lagoon or on the beachside has now been sold to hoteliers hailing from Colombo and Galle, while a few other lands have been taken over by foreign investors who partner up with these hoteliers to establish larger resorts. Pointing across from where we stood, Anthony revealed that a 25-acre area had been demarcated for a project headed by a Russian investor and construction work had commenced recently. “It is good to see the area developing, but when land is demarcated in such a manner, the residents of the area or even visitors lose access to the beach, which should ideally be open for public access. It is inconvenient for seafarers as well as lagoon anglers to set off on their daily routes to secure their day’s catch. If these developers and investors could be a little more sensitive towards the livelihoods of the people, that would help us immensely,” he said. Need to welcome fresh ideas Although there are several kitesurfing schools established in Kalpitiya today, the first school was set up by Dilsiri Welikala and Upul. The duo had trained many of the youth in the area and encouraged them to obtain instructor licences so they could build their own businesses. Speaking to The Sunday Morning, Welikala stated: “I am from Colombo and when I set up the kitesurfing school in Kalpitiya, I wanted the community to benefit from this sport. That is why we recruited enthusiastic young men to learn this adventurous sport. A decade later, as you may have observed, there are several kitesurfing schools in Kudawa alone.” According to Welikala, there is a good understanding among the residents and his establishment and staff on how they support each other to improve the quality of their lives. The lagoon offers various activities for those who are looking to explore the area, among which visiting the north of the peninsula and the other islands is a hot pick. “I use the boats that are operated by the Kalpitiya fisherfolk for the boat safaris. We set up the tour for them and they handle the boat rides, which helps them earn extra for their seafaring work. At present we have boats dedicated to the lagoon and ocean rides that are solely operated by the residents of Kalpitiya,” Welikala added. Meanwhile, Sugath Emmanuel, who is still very much part of the fishing community of Kudawa and is also the Secretary of the Kalpitiya Tourist Resort Owners’ Association, says that investors and developers from outside need to be welcomed. “While we do have some who are sceptical about the intentions of these investors and developers, we need fresh ideas on how to identify the unique selling points of our region. For instance, take kitesurfing, which was introduced by Welikala and his team. We had no idea that such a sport could be practised in our area. Today they have helped many youths to establish their own kitesurfing schools, which I see as a positive outcome.” As Sugath sees it, the tourism projects that are coming to Kalpitiya can offer direct or indirect employment opportunities to youth and women in the area, while the men can still practice their fisheries-related work or even agriculture. “The youth in this area are no longer interested in going to sea. They are interested in new employment opportunities that create better career prospects, rather than continuing to engage in, say, fishing – which at present is facing many challenges with fuel limitations – to have another method of income whilst residing closer to their homes, which can help improve living standards,” Sugath added. Kalpitiya Urban Development Plan 2030 So what of the Kalpitiya Urban Development Plan (KUDP) developed by the Urban Development Authority (UDA) and the Kalpitiya Integrated Tourism Resort Programme (KITRP) that was designed by the Board of Investment of Sri Lanka (BOI)? The KUDP was developed in 2021 in line with the National Development Plan for Sri Lanka. The first stage of this was approved through a gazette notice on 27 April 2021, prepared under Section 8 (A) of the Urban Development Authority (Amendment) Act No. 4 of 1982. The Sunday Morning reached out to UDA North Western Province (NWP) Director E.M.S.B. Ekanayake to inquire about where the UDA stands in terms of executing the KUDP. “Taking into consideration the various industries that are established in Kalpitiya, a well-thought plan needs to be in place to develop the area. What we have identified from previous development plans that were in place in tourism hotspots such as Habarana was that we did not have the necessary approvals arranged for investors to establish their projects. That is why this time we are following a framework that is tailor-made for any investor or developer to commence work without having to wait for approvals that might take years,” Ekanayake explained. According to Ekanayake, the UDA is at present looking at identifying zones marked for development as Special Commercial Zone, Mixed Development Zone, Agricultural Zone, Mixed Residential Zone, Mixed Development Zone II, Salt and Aquatic Production Zone, Beach-Based Tourism Development Zone, Island-Based Tourism Development Zone, and Eco-Tourism Development Zone. “If we have the necessary regulations in place to support inclusive development in the region, it will also assist the fishing villages to benefit whilst not hindering their traditional industries. When we did the necessary surveys in the region, there was no protest by the residents as we, during several of the meetings, explained that the plan was designed with their livelihoods in mind,” Ekanayake elaborated. KITRP to develop 14 islands When it comes to the KITRP, Ekanayake noted that the approvals for building necessary infrastructure would be obtained through the UDA, whereas private investments would be invited through the BOI.  According to the BOI, a 556-acre land expanse is being made available through the KITRP, which will require an investment of $ 200 million to develop 14 islands in the Kalpitiya peninsula. The incentives offered for those investing in KITRP include income tax holidays under the Strategic Development Projects (SDPs) Act for up to 10 years, waiver of border tariffs and sales taxes on construction material, including exemption from CESS, exemptions from VAT for services in respect of inbound tours, 30-year lease agreement from the Government, and the possibility of condominium units being transferred on a freehold basis. Other incentives that investors can obtain are dividends of non-resident entities being exempt from income and withholding taxes, property and wealth taxes not being applicable in Sri Lanka, Sri Lanka enjoying double-tax treaties with 46 nations, and permitting 100% repatriation of capital and profits.