Government has leased out another two Islands from 14 larger Islands in Kalpitiya for tourism sector to develop hotels. Ippanthive Island and Vellai 1,2,3 islands have been leased for 30 years to the two private sector companies for cheaper rate of Rs. 3198 and Rs. 1356 per acre respectively.
Under 30 year leased agreement 26.05 hectares of land have been leasedout to Sun Resort Investment Lanka (pvt) company from Vellai islands and From Ippantive Island 44.41hec. have been leased to Cube lanka leasure properties (pvt) company for 30 year.
These islands traditionally used by the local fishers who are engage in fishing activities in sea and shrimp capture fishery in Kalpitiya lagoon. No one have land titles among these fisher families. Except these companies several individuals have captured lands in these islands after the government propose to develop tourism in the 14 islands out of 23.
Local fishers are feared of loss of livelihood due to land encroachment.