Tourism Development Project

Kuchchaweli - Trincomalee



368 Acres

Land Extent

USD 80 Mn

MINIMUM Investment

Project overview

The Kuchchaveli Tourism Development Project is expected to provide a wide range of land and water-based tourist/recreational activities targeting the increasing tourist traffic the country is likely to experience once post-pandemic travel resumes. The private sector is expected to develop at least 30,000 rooms to meet the Government ambition of 2x 2019 tourist arrivals in the next 5-7-year period. This project is to be developed as a model ‘Green Resort’ focusing on sustainable development.
The location is largely untouched, and open to responsible tourism development, with potential for ecotourism initiatives that embrace nature through beautiful beaches, natural vegetation, and authentic local communities, winding its way through nature and culture trails, and hosting facilities for water-based activities, adventure sports and historical tours.

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

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

Strategic location

An untapped repository of nearby tourist attractions, ranging from beach to water sports culture and history.