Business

Leasing of Uchchamunai peninsula likely to uproot 400 families of early settlers

Published

4 years ago

2022/05/26

Sahan Weerasooriya

US$ 400mn hotel project

By Sanath Nanayakkare

Sri Lanka Tourism Development Authority (SLTDA) is moving towards establishing new tourism resorts under eco-tourism concept, and an agreement was signed on May 11, 2022 to build an eco-friendly hotel project worth US$ 417.5 million in Uchchamunai peninsula in the proposed Kalpitiya integrated tourism resort project.

All Ceylon Tourism Service Providers Association (ACTSPA) that visited the peninsula recently told The Island Financial Review that the lease agreement signed for a period of 30 years with a Switzerland-based company is aimed at driving much needed Foreign Direct Investments (FDIs) to the country, but doubt whether SLTDA has paid enough attention to the project’s impact on its innocent early settlers and pristine island habitat.

Suranjith Wevita, Secretary ACTSPA said, “According to The International Ecotourism Society (TIES), eco-tourism is responsible travel to natural areas that conserves the environment and improves the wellbeing of local people. This means those who implement and participate in eco-tourism activities should follow eco-tourism principles. They should minimise environmental impact, respect cultural norms of the community, provide positive experiences for both visitors as well as residents and enable financial benefits and empowerment for local people.”

“During our visit to Uchchamunai, we observed that the residents were a water-locked, Tamil speaking indigenous community who still lead the lifestyle of a primitive people. No one has told them that their peninsula is going to be part of a Tourism Master Plan of SLTDA.

About 400 families live in Uchchaminai. There are four churches and a school. Several leading local conglomerates have done some commendable social responsibility work for the wellbeing of this community. They told us that what they only knew was some time ago, a helicopter flew so low and took pictures of their land and the 13 islets adjacent to it. They have been told nothing about a mega hotel project being planned to be built in the island they have been living for hundreds of years.”

“The Tourism Master Plan has proposed housing for these people, but they haven’t been made aware of it either. They have a right to know that their day-to-day life is not going to be the same in the near future when this FDI project takes off.”

“Uchchamunai is one of the most beautiful islands in the North Western region. It is a bio diversity hotspot. It has a diverse ecological system ranging from bar reefs, flat coastal plains, salt marshes, mangrove forests and sand dune beeches with significant potential for tourism. SLTDA should have the vision to create a niche offering of community-based tourism in Uchchamunai with greater sustainability, instead of establishing an artificial resort island which is commonplace in many tourism destinations in the world.”

“In fact, Uchchamunai as a community-based tourism island will attract tourists to discover it in its absolute natural formation and not as an artificial, built-environment. Stressed foreign travellers would love to relax in a place like that. They will appreciate and respect the traditional culture, rituals and conventional wisdom of these primitive people. Of course, tourist accommodation and facilities should be of sufficient standard for the visitors. But there will be many tourists who will look for simple, rural accommodation and food because that will be the whole purpose of their visit. They won’t seek star class hospitality in an eco-friendly island. Thus the residents will play a bigger role in the service jobs and earn a good income which won’t be the case in a star class hotel operation. Hotel developers will definitely bring in professional service providers and the real owners of the island will be marginalised in their own territory. Do you think it’s fair?”

“When the islanders are the beneficiaries of truly authentic eco-tourism, they will be aware of the commercial and social value placed on their natural and cultural heritage. That will foster community-based conservation of these resources.”

“We shouldn’t ignore the fact that this community’s main livelihood is fishing and they lead a very simple, contented life showing gratitude for what they already have and not aiming for ‘vistas of prosperity’. So it remains to be seen how they will take to being uprooted from their contented life in their so peaceful island,” ACTSPA secretary said.

However, according to Kalpitiya Urban Development Plan 2021-2030, the resident people have ”demonstrated” their eagerness to this tourism sector development through the establishment of trade stalls to carry out businesses related to tourism.

Making reference to environment, the Development Plan further says: “The ocean, the lagoon and the islets form an array of diverse eco systems providing home to an equally diverse life forms of both fauna and flora some of which are endemic, have naturally become ‘very sensitive and fragile’ beside their scenic beauty and exploration curiosity.”

In addition to concerns on the residents and the environment, the fact that SLTDA signed the above agreement with the Switzerland-based company on May 11, 2022 when there was virtually no government in place let alone a minister of tourism to authorise it, could raise questions of its legal position at some point in the future. The Island Financial Review posed this question at Kimarli Fernando former chairperson of SLTDA through her secretary on May 19, five days before her resignation to which a response had been pending.

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Business

New policy framework for stock market deposits seen as a boon for companies

Published

21 hours ago

2026/01/14

Sahan Weerasooriya

Eardly Kern: ‘CSE experiencing strong revival

The government’s new policy framework to allocate a maximum interest rate for stock market deposits would pave the way for companies and investors to plan their future business activities, a senior stockbroker said.

‘Accordingly, the Colombo Stock Exchange (CSE) has entered a period of strong revival, supported by economic stabilization and rising investor confidence while significant market reforms would support the new policy framework on interest, Assistant Vice President Softlogic Stockbrokers, Eardly Kern, told The Island Financial Review.

He said that the imposition of maximum interest rates for stock market deposits would prevent the interest rates from moving upwards, thus paving the way for investors to invest in stocks with a lot of confidence.

Kern added: ‘The CSE outlook would provide expanding opportunities for investors as Sri Lanka positions itself for market-led investor platforms.

‘Improving macro fundamentals, such as lower interest rates, rising corporate earnings and historically attractive valuations, have been key catalysts in driving investment into the equities market.

‘These tailwinds, together with ongoing economic reforms, have helped re-establish confidence among both local and foreign investors.

‘Over the past two years, the number of CDS accounts has surpassed 949,000, with digital on-boarding through the CSE mobile app driving the latest surge.

‘Further, foreign inflows for 2024 amounted to USD 66.5 million, while Rs 175 billion was raised through capital market activity, including 16 new listings. With a target of 20 IPOs on the horizon, the CSE anticipates several new companies entering the market by early 2026.

‘The All Share Price Index (ASPI) delivered an impressive 49.7 percent return in 2024, ranking the CSE as the second-best performing market in Asia for the year. By November 2025, the index had risen a further 45.65 percent amounting to an extraordinary two-year return of approximately 95 percent.

‘The S&P SL20 Index recorded a parallel recovery, gaining 58.5 percent in 2024 and 31.84 percent so far in 2025.

‘ Despite the rally, the CSE continues to trade below its 10-year average PER and valuations remain significantly more attractive than in regional markets, such as, India, Malaysia, Vietnam, and China.

‘ Turnover has surged to Rs 1.06 trillion in 2025 (as of mid-November), nearly doubling the figure recorded in 2024. Market capitalization grew 34 percent n 2024, despite only around 40,000 active investors capturing most of the gains—highlighting the potential for broader participation.

‘ Corporate earnings have also strengthened markedly. After generating Rs 686 billion in earnings during 2024—a 50% year-on-year increase—listed entities are projected to deliver between Rs 775–800 billion in 2025. Earnings for the first half of 2025 have already grown 57 percent year-on-year.’

By Hiran H Senewiratne

Business

Dialog reinforces commitment to heritage through Kelaniya Duruthu Festival

Published

21 hours ago

2026/01/14

Sahan Weerasooriya

Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, has reinforced its enduring commitment to preserving national culture by sponsoring the Kelaniya Duruthu Festival, aligning long standing patronage with purposeful community engagement to honour religious heritage, support cultural continuity, and strengthen shared values.

The annual Kelaniya Duruthu Festival, one of Sri Lanka’s most significant religious and cultural observances, was held on 8th, 9th and 11th January 2026, marking a congregation of thousands of devotees and visitors at the historic Kelaniya Raja Maha Vihara. As a long-term patron, Dialog continues to provide sponsorship support, enabling the seamless organisation of the festival while uplifting traditions deeply rooted in the nation’s cultural identity.

Through its continued support of the Kelaniya Duruthu Festival, Dialog underscores its role as a responsible corporate citizen dedicated to safeguarding Sri Lanka’s cultural and religious heritage for future generations. This commitment is further reflected in Dialog’s long-term patronage of national events such as the Kandy Esala Perahara, Nawam Maha Perahara at Gangaramaya, Katharagama Esala Perahara and Gatabaru Esala Perahara. Complementing these efforts, Dialog has also undertaken heritage preservation initiatives including the construction of the vestibule at Dimbulagala Aranya Senasanaya, the launch of a website and directory of Amarapura Maha Nikaya Temples, and the restoration of the Anuradhapura Maha Vihara Sannipatha Shalawa.

Business

Sri Lanka launches its first-ever Smart Bus Ticketing System

Published

21 hours ago

2026/01/14

Sahan Weerasooriya

Advancing public transport with digital bus ticketing — CBA, in partnership with SLTB and Nimbus Venture.

A National Breakthrough in Public Transport Digitalization Powered by Ceylon Business Appliances with Nimbus Ventures.

Sri Lanka has taken a historic step forward with the launch of its first Smart Bus Ticketing System, enabling passengers to pay fares using contactless cards, digital wallets, and QR payments. This advancement places the country among global leaders in smart mobility.

The initiative was made possible through collaboration with the Government of Sri Lanka, leading banking partners, and the technology leadership of Ceylon Business Appliances (CBA) and Nimbus Ventures, who serve as the Technology, Software, Hardware, and Operational Partners behind the nation’s first Open Loop Transit Payment System.

For decades, CBA has been at the forefront of Sri Lanka’s digital transformation efforts—bringing modern, global-standard technologies that have strengthened the nation’s digital infrastructure.

Speaking to the media at the launch, Sardha Fernando, Managing Director of CBA, stated:

“This is not just a ticketing upgrade—it is a complete digital evolution of public transport in Sri Lanka. For years, CBA has been committed to introducing advanced technologies to the country, and today, we are proud to bring a globally recognized, secure, and seamless smart transit solution to our people. With every tap, we are enabling convenience, transparency, and a more connected future for all Sri Lankans.”

He added:

“This milestone reflects our ongoing mission: to help build a digitally empowered Sri Lanka that is ready to embrace the technologies shaping the world.”

‘Ruwath Fernando, CEO/Director of CBA, highlighted:

“This project demonstrates that Sri Lanka is ready to adopt and operate on par with global smart mobility technologies. Our commitment has always been to bring the world’s best software systems and innovations into Sri Lanka—solutions that are secure, scalable, and built to international standards.”

He continued:

“By introducing a state-of-the-art open-loop transit payment platform, we are proving that Sri Lanka can not only embrace but also successfully operate advanced digital ecosystems. This is a defining moment in positioning the country as a technology-proof nation prepared to trial and adopt global digital advancements.”

CBA extends heartfelt congratulations to the banking partners who trusted this vision—

Sampath Bank, Commercial Bank, Bank of Ceylon, People’s Bank, and DFCC Bank— on the successful launch of their new ticketing application.

This application integrates seamlessly with the PAX A910S ticketing device, powered by a robust CBA– Nimbus ventures software solution, engineered for scale, reliability, and national deployment..