Business

‘Hotel sector investment in tourism industry exceeding USD 15 billion despite facing stiff challenges’

Published

1 year ago

2024/12/7

Thilina Walpola

M. Shanthikumar: ‘SL in need of global tourism plan’

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.’

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Business

Salesforce Startup Program targets Sri Lanka’s high-growth tech sector

Published

1 hour ago

2026/01/9

Thilina Walpola

Bhattacharya (L) and Madusanka at the launch

Salesforce, the world’s leading AI-powered CRM platform, is set to expand its presence in Sri Lanka with the launch of the Salesforce Startup Program by the end of January 2026, signalling growing confidence in the country’s technology-led growth potential.

The move comes as Sri Lanka consolidates its position as the second-largest startup ecosystem in South Asia after India, with software, data and artificial intelligence-driven ventures accounting for nearly 60 per cent of the national startup base.

Industry observers say this concentration places Sri Lanka at a decisive stage where global exposure and enterprise access could unlock the next phase of scale.

Under the programme, Sri Lankan startups will gain access to Salesforce’s global ecosystem, including AI-powered platforms, business and technical mentorship, joint go-to-market opportunities and connections to enterprise customers, enabling founders to build globally competitive solutions from Sri Lanka.

“Sri Lanka has developed a strong base of technical talent and entrepreneurial ambition that is increasingly visible regionally and globally,” said Arundhati Bhattacharya, President and CEO of Salesforce South Asia.

“Through the Salesforce Startup Program, we aim to help startups move beyond early momentum to global relevance while delivering long-term economic impact,” he added.

He also said the initiative builds on the success of its Startup Program in India and Singapore, which today supports over 435 startups, including more than 230 AI-first companies. Several participants have expanded across Asia and beyond by building products natively on the Salesforce platform.

Responding to queries, he said Sri Lanka is also emerging as an important enterprise market for Salesforce, with major corporates such as John Keells Holdings and Cinnamon Hotels adopting the platform to modernise customer engagement, sales, marketing and loyalty management operations.

In parallel, Salesforce is strengthening the country’s digital talent pipeline through its Trailhead learning ecosystem, with plans to skill nearly 1,000 learners over the next year via local workforce development partners and community-led cohorts.

Chamil Madusanka, Head of Salesforce Practice and Salesforce Architect, said the programme arrives at a critical juncture for Sri Lanka’s startup ecosystem.

“Sri Lankan founders are increasingly building AI, data and enterprise software solutions with global relevance,” Madusanka told The Island Financial Review.

“What many startups need is structured access to enterprise customers, global mentorship and market exposure. This initiative creates that bridge, enabling local companies to scale faster while remaining rooted in Sri Lanka.”

He said the Startup Program is designed to act as a connective platform, bringing together startups, enterprises, technology partners, universities and developer communities to accelerate collaboration and innovation.

By Ifham Nizam ✍️

Business

Good news on risen foreign reserves exerts buoyant impact on bourse

Published

1 hour ago

2026/01/9

Thilina Walpola

CSE activities were extremely bullish yesterday following Central Bank Governor Dr Nandalal Weerasinghe’s announcement that Sri Lanka’s foreign reserves had risen to US $ 6.8 billion in December 2025, up US$ 791 million from November 2025.

The Governor provided the estimated economic growth while announcing the Central Bank’s policy agenda for this year.

In December Sri Lanka received budget support loans from the Asian Development Bank and the International Monetary Fund.

Dr Nandalal Weerasinghe

Amid these developments both CSE indices moved upwards. The All Share Price Index went up by 226.81 points, while the S and P SL20 rose by 100.01 points. Turnover stood at Rs 12.3 billion with 12 crossings.

Top seven crossings that mainly contributed to the turnover were: Lee Hedges 18.2 million shares crossed to the tune of Rs 3.9 billion; its shares traded at Rs 416, Commercial Bank 2.1 million shares crossed for Rs 467.6 million; its shares traded at Rs 215, Ceylon Hotels 429,000 shares crossed for Rs 128.7 million; its shares traded at Rs 300, LB Finance 650,000 shares crossed for Rs 105 million; its shares sold at Rs 152.50, Ceylinco Holdings 31000 shares crossed for Rs 104.5 million; its shares traded at Rs 3400, Melstacorp 200,000 shares crossed tfor Rs 35.7 million; its shares sold at Rs 178.50 and Three Acres Farm 400,000 shares crossed to the tune of Rs 29.6 million; its shares fetched Rs 740.

In the retail market top seven companies that mainly contributed to the turnover were; Wealth Trust Securities Rs 1.17 billion (55.8 million shares traded), Commercial Bank Rs 509 million (2.4 million shares traded), HNB Rs 370 million (870,000 shares traded), ACL Cables Rs 303 million (three million shares traded), Prime Lands Residencies Rs 283 million (7.9 million shares traded), Lanka Realty Rs 227.5 million (4.7 million shares traded) and HNB Rs 218 million (332,000 shares traded). During the day 223.7 million share volumes changed hands in 55116 transactions.

Yesterday, investor interest in Wealth Trust and banking stocks led to higher activity levels, brokers said. Further, the real estate sector also performed well. Lanka Realty Investments PLC acquired 51 percent of the total number of shares in issue of Lee Hedges, CSE sources said. 13,057,595 ordinary voting shares were bought at Rs 216 each.

Yesterday the rupee opened at Rs 310.12/18 to the US dollar in the spot market, weaker from Rs 310.05/15 the previous day, dealers said, while bond yields opened marginally high.

By Hiran H Senewiratne ✍️

Business

Launch of monograph ‘Development: Not By Economics Alone’

Published

1 hour ago

2026/01/9

Thilina Walpola

The Gamani Corea Foundation (GCF) is pleased to announce the launch of the monograph Development: Not By Economics Alone by Dr. Nimal Sanderatne, Emeritus Chairperson of the Foundation. The foreword to the publication has been written by Dr. Godfrey Gunatilleke, one of Sri Lanka’s most eminent development economists. The launch ceremony will be held on Friday, 9th January 2026, at 4.00 p.m. at the Horton Lodge.

In this monograph, Dr. Sanderatne argues that development cannot be understood through economic indicators alone. He emphasizes that the quality of human capital depends not only on knowledge and skills acquired through formal education, but also on deeper, non-formal processes embedded in a society’s culture and value systems. These influence human behaviour, shaping work ethics, attitudes to work and leisure, capacity for teamwork, preferences between short- and long-term goals, and patterns of saving and consumption.

Dr. Sanderatne is a distinguished economist and academic, holding degrees from the Universities of London, Saskatchewan, and Wisconsin, and was conferred the Doctor of Science (Honoris Causa) by the University of Peradeniya in 2004.