Integrated Tourism Resort Program

Kalpitiya - Puttalam



556 Acres

Land Extent

USD 200 Mn

MINIMUM Investment

Project overview

14 islands in the Kalpitiya peninsula off the West Coast of Sri Lanka have been identified for the Kalpitiya Integrated Tourism Resort Program (KITRP), which is one of the most extensive projects undertaken in the country to generate environmentally friendly sustainable tourism. Spanning over 100 hectares of land in addition to the landmass of the islands, the KITRP is geared to transform the locale into a resort area comprising of over 6,000 accommodation units including luxury hotels, villas, Ayurveda spas, cabanas, sun huts, low-cost accommodation units, a domestic airport (Uchchimunai), amusement parks, underwater theme park (Kandakkuliya), cable cars, speed boat safaris, water sporting facilities, an 18-hole golf course, a tourism and hotel management training institute, botanical gardens, agricultural and livestock farms, hot air ballooning facilities, a hospital, a race course, cricket grounds and a museum.

This development will partially address the demand for at least 30,000 rooms needed to meet the government ambition of 2x 2019 tourist arrivals in the next 5-7-year period.

Two of 14 islands are currently available for investment opportunities (308 acres & 248 acres).

Project/ownership structure

Public Private Partnership, Foreign Direct Investments (FDI), Domestic private investment

Project incentives:

Income tax holidays under the Strategic Development Projects (SDP) Act for up to 10 years based on investment specifics.

Waiver of border tariffs & sales taxes on construction material including exemption from CESS.(cost savings of 30% – 40%)

Exemptions from VAT for services in respect of inbound tours.

Land Agreement/ownership: 30 years lease from the Government of Sri Lanka

Condominium units can be transferred on a free hold basis

Other incentives:

Dividends to non-resident entities are exempt from income and withholding taxes

Property and wealth taxes are not applicable in Sri Lanka

Sri Lanka enjoys double-tax treaties with 46 nations
100% repatriation of capital and profits permitted

Strategic location

14 islands in the Kalpitiya peninsula were identified for this extensive tourism project, of which two islands are currently available for investment opportunities (308 acres & 248 acres)