The stalled water bungalow project in the islands of Vellai I, II, and III awarded to Sun Resort Lanka (Pvt) Ltd. is yet to commence despite receiving all necessary regulatory approval required for commencement earlier this year, according to the Sri Lanka Tourism Development Authority (SLTDA).
Speaking to The Sunday Morning Business, SLTDA Chairman Priantha Fernando stated that the unique water bungalow project in the islands of Vellai I, II, and III was set to commence construction following the granting of necessary regulatory approval.
The Vellai islands are part of the 14 islands off the shore of Kalpitiya, Puttalam in the North Western Province.
Commenting further, he stated: “The commencement of this project was stalled due to delays in obtaining clearance. The necessary clearances have now been granted. However, the investor is yet to commence construction.
“Since the delay was due to the failure of other agencies to grant the necessary approval, we have not specified a deadline to commence construction. However, we are now pushing the investor to start the project and expect them to commence within a reasonable time, failing which we will call for proposals again and proceed with another investor.”
According to the SLTDA Annual Report, despite its request for the investor to first develop the facilities on land, the investor had insisted that full approval for the water bungalows be received in order to commence the full development at once.
Commenting on the development project in the Ippantive Island awarded to Qube Lanka Leisure Properties (Pvt) Ltd., Fernando acknowledged that it had received some opposition from the fishing community, who claimed that their day-to-day activities were being disturbed.
Thereafter, a solution had been reached following negotiations. However, the investor had not been in agreement with the solution and had demanded a land swap for the project.
“If I remember correctly, the investor wanted to swap it with another land in Nuwara Eliya. However, we don’t own land in Nuwara Eliya to give them,” Fernando stated.
He revealed that should the investor persist in delaying the project, the SLTDA would be compelled to view it as a breach of contract and would then be required to invite proposals from new investors, leading to Qube Lanka Leisure forfeiting all payments made to the SLTDA thus far.
Fernando stated that the investor had been well aware of this when entering into the agreement: “They were required to reach an understanding with the local communities and to ensure that their welfare would be taken care of. It is part and parcel of the agreement.”
