Govt. to lease part of Delft Island for chalet resort
The leisure arm of Sri Lanka’s MMBL Group, MMBL Leisure Holdings Private Limited (MMBL Leisure) is to construct a 40-chalet resort with an investment of Rs.1 billion in the Delft, an island in the Palk Strait, Northern part of Sri Lanka, according to the country’s Investment Promotion Minister.
To this effect, Minister Lakshman Yapa Abeywardena was to present the Cabinet paper yesterday, clearing matters relating to the 48 acre government-owned land which is to be given on long term lease.
MMBL Leisure has already set up a Board of Investment (BoI) entity named, Palk Bay Resort Private Limited in line with the group policy of establishing a separate Strategic Business Unit whenever a new project is undertaken.
Meanwhile, MMBL Leisure Chairman Bernard Goonetilleke did not rule out the possibility of foreign investors having a hand in the total investment, but did not disclose the share.
Another city hotel in the Jaffna peninsula by the same company is currently underway with Jetwing Hotels, its joint venture partner.
This 40-chalet hotel is just the first stage of the project.
Goonatilleke said it will take at least another 12-months to complete clearance from other state agencies such Central EnvironmentalAuthority and the Sri Lanka Tourism Development Authority.
Hence, he could not say when the construction would begin. However, he stressed that it would be started no sooner he received the nod from relevant agencies.
According to Minister Abeywardena, at least 60 percent of the foreign direct investments (FDIs) received this year were for the leisure sector but Ceylon Chamber of Commerce reiterated the need to diversify investments into other areas with special emphasis to export-oriented industries.