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Wednesday, March 02, 2011

Govt rejects all 11 tenders for Kalpitiya tourism development project

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*Govt to set a price and lease off land after ‘Treasury Interview’

*Tony Greig gets US$ 10,000 as Sri Lanka Tourism ambassador

By Mario Andree

The government in future will lease out land for tourism development on a first come first served basis in Kalpitiya in North Western Sri Lanka instead of calling for tenders. The Deputy Economic Development Minister Lakshman Yapa Abeywardane told journalists at a news conference yesterday (1) that the government had rejected tenders from all 11 bidders to develop tourism infrastructure on several islets off Kalpitiya. "We would set a price and lease out land on a first-come-first served basis," he said.
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Abeywardane said all eleven tenders have been rejected, but refused to elaborate. "We cannot tell you the reason for this," he told journalists. The Deputy Minister said the government would instead lease out properties on the islets at a rate yet to be determined, similar to a scheme introduced in the North and East.

The government is leasing out land at Rs. 20 million an acre on a 99 year lease in the North and East for tourism development, after an interview with the Treasury.

Abeywardane said two companies will be allocated land after they ‘passed’ the Treasury interview but declined to reveal details about them.

"Four other international hotel chains in the calibre of Shangri La have also commenced discussions with the government," the deputy minister said, again not elaborating.

He said former England Cricket Captain Tony Greig was appointed Sri Lanka Tourism ambassador for US$ 10,000 for a six-month period.
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