Hon.Prasanna Ranatunga, Minister of Tourism has submitted a Cabinet Memorandum to obtain the approval of the Cabinet for the construction of water villas and water bungalows in view of developing the tourism industry in Sri Lanka.The Cabinet Memorandum submitted by the Minister of Tourism proposes to construct water villas and water bungalows in the vicinity of the islands in Kalpitiya area.

Currently, these water villas and water bungalows are in operation in many countries such as Maldives, Indonesia, Vietnam, Mauritius, Mexico, Cambodia, Fiji and Europe, France and Switzerland, attracting more and more tourists from many countries in the world.

Eco-friendly water villas and water bungalows are constructed so as to provide an innovative experience by constructing structures in the shallow waters around the islands in Kalpitiya.It has now been identified that there is great potential to build and promote such water villas and water bungalows in some places in the Northern Peninsula and Kalpitiya in Sri Lanka.