Sri Lanka Tourism opens 3,000 acres of land in drive to attract $ 60 m investment

Tourism Deputy Minister Prof. Ruwan Ranasinghe 

• Tourism Deputy Minister Prof. Ruwan Ranasinghe says new Land Bank Management Information System allows investors to browse pre-screened, investment-ready lands
• Investment opportunities include eco resorts, wellness retreats, MICE tourism hubs, agro-tourism and boutique hotels
• States lands are mostly available on 33-year leases, with private landowners also encouraged to list lands for sale, lease or partnership
• Asserts inactive or stalled projects will face land repossession to prevent land speculation and delays
• SLTDA Chief Buddhika Hewawasam says first tender round opens this week
• Confirms three projects totalling $ 55 m committed during 1H of 2025 in Eastern and Northern Provinces
• Says additional 2,000 acres expected to be added in 2025, expanding initiative to 5,000 acres total
• Works with multiple State land-owning agencies and Divisional Secretariats to identify, screen and release viable land plots

By Charumini de Silva

The Sri Lanka Tourism Development Authority (SLTDA) last Friday announced a major initiative to unlock State-owned land for tourism, offering over 3,000 acres to domestic and international investors to woo $ 50-60 million investments.

The move seeks to revitalise the tourism industry through structured, sustainable, transparent processes. 

“The initiative includes a land bank which is clear and ready for investment,” Tourism Deputy Minister Prof. Ruwan Ranasinghe told journalists. 

He said investment opportunities range from star-class hotels, eco resorts, wellness retreats, boutique hotels, adventure lodges, agro tourism projects to Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism and integrated tourism hubs. 

Noting that most of the lands will be leased for 33 years, Prof. Ranasinghe extended an invitation to the private sector land owners to join with the SLTDA to seize the opportunity of finding suitable investors through a sale, a lease or a partnership and contribute to the economic development of the country. 

He said these lands are available in an automated system under the SLTDA named ‘Land Bank Management Information System (LBMIS) for both land owners to upload the new lands and for the interested investors to select a land for investments. The system can be accessed through https:/landbank.sltda.gov.lk/

The SLTDA’s Investment Relations Unit (IRU), with its scoping committee and one-stop-shop concept, aims to facilitate this for international investors, making land banks more investor-friendly. The lands that are listed in LBMIS are pre-evaluated for the suitability for a tourism development after site-inspections and the basic screening for land ownership has been done. 

However, the Deputy Minister said the projects that fail to meet obligations according to the agreement and materialise, will see the land repossessed to avoid the long delays that have historically plagued the sector.

“In the past several allocated sites remained undeveloped for years. A strict development timeline will be enforced to prevent land speculation and stalled projects,” he added. 

Prof. Ranasinghe said the land release is part of a broader push to stabilise tourism infrastructure and bring coherence to project development. 

“Until now, lands were identified adhoc, typically only after an investor submitted an Expression of Interest (EoIs). We aim to replace that reactive model and establish a proactive, inventory-led, technology-driven process,” he stressed. 

SLTDA Chairman Buddhika Hewawasam said the first round of tenders will open this week for investment proposals. 

“The Government is targeting world-class tourism ventures with a focus on environment, sustainability, community benefits and commercial scale,” he added. 

He said the process is designed to be continuous, with the SLTDA maintaining a stabilised review committee to assess and process proposals on a rolling basis.

“In the past, valuable prime land slots were locked in for inactive projects. This is not a one-time announcement. It is the beginning of a permanent process that will be continually evaluated and expanded,” he asserted. 

Hewawasam said three investments worth $ 55 million have been committed across Eastern and Northern provinces so far during the first half of the year, while an additional 2,00 acres expected to be added to the initiative within the year, bringing the total potential lands to 5,000 acres. 

The SLTDA Chief also said SLTDA is already in collaboration with Divisional Secretariats identifying and vetting plots for potential release and other land-owning State agencies such as Sri Lanka Ports Authority, Urban Development Authority, Mahaweli Authority, Land Reform Commission, Sri Lanka Railways, Forest Department, Janatha Estate Development Board to obtain formal partnerships, details of cleared lands for tourism development. 

He extended SLTDA’s commitment to supporting investors by streamlining the clearance process, a historical obstacle that often involved over 21 different licenses and approvals. 

“The Government now promises a streamlined system to cut red tape and accelerate project delivery,” he added. 

Prof. Ranasinghe listed out the premium land areas currently available, which includes:

Bentota National Holiday Resort Zone: 24 acres

Kochuveli Beach Resort Zone: 74 acres

Kalpitiya Island Resort Zone:

Baththalangunduwa: 291 acres

Uchchamunai: 1095 acres

Pasikudah National Holiday Resort: 6.5 acres

Dedduwa Lake Resort Area: 1713 acres

Bulanayaya, Pidurangala area: 19 acres

Rasool Thottam, Trincomalee: around 40 acres

Allas Garden, Trincomalee: around 4 acres