Business
‘Hotel sector investment in tourism industry exceeding USD 15 billion despite facing stiff challenges’
By Harischandra Gunaratna
President of The Hotels Association of Sri Lanka (THASL) M. Shanthikumar addressing its members at the organization’s 59th anniversary celebrations recently at the ITC ‘Ratnadipa’ said that the hotel sector investment in Sri Lankan tourism today, amounting to over USD 15 billion, is the highest investment by any sector in the tourism industry, while accounting for 70% of the entire tourism-related workforce.
The highest contribution to government coffers is made by our member hotels. It is by way of TDL payments, taxes, levies, license fees and other payments, he said.
‘Our industry has faced many challenges. We have always shown resilience and come out better. The present time, has been the most challenging after four continuous difficult years since 2019, the THASL president said.
Shanthikumar added: ‘Tourism is a key foreign exchange earner. If the net foreign exchange is assessed, tourism becomes the 2nd highest foreign exchange earner, surpassing even apparel and all other exports. This is due to the consumption of the product happening in the country itself, where the benefit filters down to the grass roots levels. Eg: A tourist arriving in the country not only remits dollars prior to their arrival but spends a large amount of money within the country during their stay. Unfortunately, these figures are not tracked.
‘Dominance of the accommodation providers and their contribution to tourism cannot be underestimated. Hoteliers play a critical part in the overall tourism growth in the country. Not only in Sri Lanka but across the world.
‘THASL is the oldest tourism association in the country and It was set up even prior to the then Ceylon Tourist Board which is now the Sri Lanka Tourism Development Authority.
‘The tourism industry in Sri Lanka should adopt new robust policies. The same old models that are in books may not work. We need the government to look at exceptional financial models, development models for the revival of tourism. A critical role is played by the SME sector in tourism as well as by the informal sector, which we estimate has almost the same number of rooms as the formal sector. These require to be regulated so that they have the proper health and safety guidelines, SLTDA license and fall into the tax net.
‘Our members continue to spend over Rs 3 billion annually on overseas marketing and promotions. This is in addition to TDL. Further, billions of rupees are spent to maintain hotel plants, for continuous training of staff and for day –to- day operations.
‘THASL would like to highlight some of the critical areas of concern which require immediate attention to sustain this industry.
‘Through a Gazette notification issued in 2024, the Excise Department has suddenly increased the liquor license fees and taxes with retrospective effect. This is grossly unethical and unfair.
‘Eg: A small hoteliers who paid Rs. 454,000 last year now has to pay approximately Rs.754, 000. For larger hotels, from Rs 2.5 million to Rs 5 million.
‘The hotel sector contributes 1% of the turnover as TDL to promote and develop tourism. The Treasury does not provide funds for development and promotion. The local government authorities are demanding of hotels to pay a further 1% tax on turnover, while all other industries, such as, banks, hospitals, super markets and apparel organizations only pay Rs. 6000/- per annum. These industries record much higher earnings than hotels. Hotels too must pay the same rate as all other industries. This has been a burning issue for the hotel industry for over 10 years and over 200 legal cases are pending.
‘Why is an industry recording such high forex earnings being penalized and discriminated against?
‘These factors while confusing, are a clear indication that there is no strategic, holistic plan to develop this industry.
‘The hospitality industry is experiencing a severe dearth of skilled and unskilled staff at all levels. With hotels being located across the country, there is great opportunity for trained youth and females to get jobs nearby to their villages or home towns. The female workforce in hospitality in Sri Lanka is still far below regional levels. Hence, there is a need to develop the necessary human capital in large numbers on a priority basis and to reorganize the SLITHM, to churn out the much needed hotel sector staff by training the youth to fit into the hospitality industry.
‘The country has not had a global tourism promotion campaign in place for the past 15 years. We have seen in the past that to plan and roll out a new campaign takes a very long time. Time is of the essence if we are to achieve the proposed arrival targets. Competing destinations, such as the Maldives, Vietnam, Thailand and Maylasia are carrying out very effective campaigns in key source markets.’
Business
APHNH aims to make Sri Lanka more competitive for healthcare investment
Sri Lanka private healthcare leaders recently pledged an action plan with timelines to address the practical priorities of Sri Lanka’s healthcare sector while making it more viable for local and foreign investments.
The Association of Private Hospitals and Nursing Homes (APHNH) has committed to converting recommendations from its first Healthcare Leadership Summit into a trackable outcome document with defined actions, responsibilities, and timelines, marking a shift from discussion to implementation in sector reform efforts.
The summit held on March 9 at Waters Edge, Colombo, brought together hospital leaders, policymakers, regulators, insurers, and international experts to address practical priorities for Sri Lanka’s healthcare sector.
A key outcome of the summit was APHNH’s plan to consolidate recommendations into a single, trackable charter that will outline specific actions, assign responsibilities, establish timelines, and provide periodic progress updates.
“Our objective is to bring the right decision-makers into one room and focus on what can be implemented, not only what can be discussed, ” said Raveen Wickremesinghe, President of APHNH. “We are committed to taking the inputs from today and converting them into a clear, trackable set of actions that strengthens quality, transparency and public confidence, while supporting national health priorities. “
The summit featured insights from Dr. Hafeez Rahman Padiyath, Dr. Hamdani Anver, and Chandana L. Aluthgama on scaling quality and operational discipline. A keynote and fireside discussion with Dr. Paiboon Eksangsri, President of the Private Hospital Association of Thailand, explored lessons from Thailand’s private healthcare development and conditions for making Sri Lanka more competitive for healthcare investment.
By Sanath Nanayakkare
Business
Atlas SipSavi Naththal Poronduwa records positive public participation, benefiting 10,000 students
Atlas, Sri Lanka’s No. 1 learning brand, successfully concluded Atlas SipSavi Naththal Poronduwa, a national initiative that saw strong public participation in supporting children at risk of dropping out of school due to financial hardship. At a time when more than 22,000 Sri Lankan children leave school each year due to rising economic challenges, the initiative reinforced Atlas Sipsavi’s long-standing ‘No Child Left Behind’ promise by turning seasonal generosity into meaningful educational support.
The initiative reached 10,000 students, with beneficiary schools carefully selected to ensure support reached those most in need. The collected books were distributed to children at risk of dropping out, including those whose education had been disrupted by recent adverse weather, ensuring students had essential learning resources at the start of the new school term. Through its flagship Atlas SipSavi programme, the brand focused on improving access to education by providing essential learning tools, scholarships, and infrastructure to create better learning environments, bringing its purpose of ‘making learning fun’ to life in a meaningful way. As part of the initiative, the public was invited to donate schoolbooks, with each contribution matched one-for-one by Atlas. Donation boxes were placed at all Keells outlets island-wide and at Sarvodaya District Offices, making it easy for communities to take part.
Business
John Keells Logistics expands strategic engagement with CWIT through inter-terminal transport operations
John Keells Logistics (Pvt) Ltd (JKLL), one of Sri Lanka’s leading third-party logistics solutions providers, has successfully expanded its operational engagement with Colombo West International Terminal (Private) Limited (CWIT), through inter-terminal transport services within the Port of Colombo. This enhanced engagement further strengthens CWIT’s efforts to improve operational efficiency, reliability, and scalability across terminal activities.
Inter-terminal transport plays a critical role in modern port operations, requiring high levels of coordination, precision, and operational discipline. JKLL’s appointment for ITT operations reflects CWIT’s confidence in the company’s demonstrated capabilities in managing complex transport operations within a high-throughput port environment.
The ITT operations are underpinned by JKLL’s technology-enabled logistics framework, incorporating real-time fleet tracking, performance monitoring systems, and data-driven operational planning. These capabilities provide enhanced visibility and control over transport movements, while ensuring compliance with established safety, productivity, and service quality standards.
The awarding of this engagement to JKLL is a testament to the successful implementation of the Inter-Terminal Vehicle (ITV) operations undertaken by John Keells Logistics at CWIT during the previous year. The ITV assignment was executed through structured operating procedures and disciplined service delivery, contributing to improved cargo movement, operational coordination, and service continuity within the terminal. The performance outcomes of the ITV operations provided the basis for the subsequent expansion of the partnership into ITT services.
-
News5 days agoRepatriation of Iranian naval personnel Sri Lanka’s call: Washington
-
Features5 days agoWinds of Change:Geopolitics at the crossroads of South and Southeast Asia
-
News4 days agoProf. Dunusinghe warns Lanka at serious risk due to ME war
-
Sports3 days agoRoyal start favourites in historic Battle of the Blues
-
Sports2 days agoThe 147th Royal–Thomian and 175 Years of the School by the Sea
-
News2 days agoHistoric address by BASL President at the Supreme Court of India
-
News3 days agoCEBEU warns of operational disruptions amid uncertainty over CEB restructuring
-
Business6 days agoSeven decades of sartorial excellence: The legacy of Linton Master Tailors in Kandy
