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
Harnessing nature’s wisdom: Experts highlight “Resist–Align” path to resilience
As Sri Lanka confronts mounting environmental and economic pressures, a timely national conversation on resilience has underscored the urgent need to rethink how societies respond to change—by balancing resistance with alignment to nature.
The inaugural Nature Talks Webinar Series, titled “Nature’s Secrets for Building Resilience in a Changing World,” took place on Wednesday night, bringing together leading environmental thinkers who argued that resilience is no longer optional, but essential in navigating climate and ecological uncertainty.
Organised collaboratively by the International Centre for Biological Studies (ICBS), GAP HQ, and the Biomimicry Research Centre, the session aimed to bridge science, policy, and innovation, while drawing practical lessons from nature.
Leading the discussion, Professor Sarath Kotagama of the University of Colombo emphasised that resilience must be understood as a combination of resistance and alignment.
“Resilience is about resisting where necessary, but also forming alliances with change,” he said. “We are not saying we can stop everything. The real question is—can we adjust to live with it?”
He urged societies to reflect on their ability not only to prevent or resist environmental change, but also to adapt intelligently to it. Referring to global developments such as Artemis II, Kotagama noted that humanity is increasingly being reminded of how rapidly conditions are shifting on Earth.
Drawing lessons from the COVID-19 pandemic, Professor Kotagama outlined several insights that have reshaped thinking on resilience.
“One of the most important lessons was the role of microbes,” he said. “We always focused on large animals in biodiversity, but COVID showed us that invisible organisms can have a massive impact on the planet.”
He explained that while conservation has traditionally prioritised charismatic species such as elephants and birds, microorganisms—often overlooked—are equally critical to ecological balance.
Professor Kotagama also challenged assumptions about nature. “Nature is not always kind or caring. Under certain conditions, it can be harsh, and humans don’t necessarily feel affection for all forms of life—especially microbes,” he said.
At the same time, he stressed the decisive role of science. “If not for science, we would not have survived as we did,” he noted, pointing to the rapid development of vaccines despite global norms that typically require years of testing.
He further highlighted the importance of governance. “We may not always like governments, but during COVID, governments mattered. Without coordinated action, the outcome would have been far worse,” he said.
Professor Kotagama added that the pandemic exposed vulnerabilities in the global economic system, with industries such as tourism collapsing almost overnight due to what he described as “an invisible microbe.”
“It showed clearly that systems we thought were stable can be disrupted instantly,” he said, warning that unsustainable development models—particularly in tourism—must be reconsidered.
Meanwhile, Professor Sevandi Jayakody of Wayamba University of Sri Lanka highlighted biomimicry as a key pathway to resilience.
“The biggest answer to resilience is biomimicry,” Professor Jayakody said. “Nature already holds solutions—we just need to understand and apply them.”
She explained that biomimicry can operate at the level of form, process, or systems, and cited mangrove restoration as a practical example. Attempts to artificially recreate ecosystems often fall short unless they follow natural patterns such as tidal flows and species interactions.
“In restoring degraded mangroves, we learned that forcing systems does not work. When we followed natural contours and introduced resilient ‘nurse’ species, the ecosystem began to recover on its own,” she said.
Professor Jayakody emphasised that resilience must be embedded within environmental systems rather than imposed externally. “Resilience is a function of the environment we live in. If we ignore that, our interventions will fail,” she said.
She also cautioned against expecting rapid results. “Nature is slow. Humans are in a hurry,” Professor Jayakody noted, pointing to long-term data showing that even measurable ecological changes—such as seasonal shifts—can occur gradually over decades.
“Change is inevitable, but it is not always sudden. We need long-term data, patience, and the wisdom to interpret it correctly,” she added.
Moderating the session, Imaduwa Priyadarshana brought a practical perspective on sustainable design and adaptation, highlighting how nature-based thinking can inform urban planning and infrastructure.
With Sri Lanka grappling with climate variability, coastal degradation, and energy challenges, the experts stressed that such knowledge-sharing platforms are increasingly vital. The discussion aligned with a growing global shift towards nature-based solutions—learning from ecosystems that have evolved resilience over millennia.
By Ifham Nizam
Business
Uber Eats continues Sri Lankan expansion now in Nuwara Eliya
Uber Eats is now live in Nuwara Eliya, making it easier for locals and tourists to enjoy their favourite meals – from a hot plate of kottu on a chilly evening to a comforting rice and curry spread or crispy egg hoppers – delivered right to their doorstep.
Known for its cool climate, old-world charm, and rolling tea estates, Nuwara Eliya sees a surge of Sri Lankan and international visitors during the April holiday season. But as temperatures drop in the evenings, food options have traditionally been limited, with many outlets closing early.
With Uber Eats now available, consumers can discover and order from a growing range of local restaurants and neighbourhood favourites – without stepping out. The platform also extends access to meals into the late evening, making it easier to find food even after most outlets have closed. In Nuwara Eliya, specially designed temperature-controlled insulated bags will help ensure meals are delivered hot. Consumers can choose from a wide variety of cuisines including Sri Lankan, Indian, Chinese, Thai, and Arabic or order from global brands such as KFC, Pizza Hut, and Domino’s.
The launch supports the local community by enabling restaurants to reach more customers across the city, while creating flexible earning opportunities for delivery partners, especially during the busy holiday season.
Varun Wijewardane, Country Manager – Delivery, Uber Sri Lanka, said: “Nuwara Eliya is one of Sri Lanka’s most loved destinations, especially during the April season. With Uber Eats now live, we’re making it easier to enjoy great food more conveniently – from everyday favourites to late evening short eats while also supporting local restaurants and creating earning opportunities within the community. This comes on the back of an aggressive expansion of our services across Sri Lanka – providing our consumers with convenient access to local favourites and unlocking earning opportunities for more Sri Lankan communities.”
Entry in Nuwara Eliya builds on expansion from last year across 6 districts including Hikkaduwa, Ambalangoda, Chilaw, Wennappuwa, and Puttalam, Jaffna, Gampola, Matale, Matara, Weligama, Mirissa, and Anuradhapura – further strengthening Uber Eats’ position as the country’s go-to delivery platform.
Business
Five consecutive years as a Company with Great Managers
Union Assurance, Sri Lanka’s longest-standing private Life Insurer, was honoured as a ‘Company with Great Managers’ for fifth consecutive year at the CLA Great Managers Awards 2025, held at Cinnamon Grand Colombo. Presented annually by the Colombo Leadership Academy & CLA Coaching Inc, the award affirms that Union Assurance’s approach to leadership excellence is not episodic, but deeply embedded across the Company.
The CLA Great Managers Awards programme, powered by Colombo Leadership Academy & CLA Coaching Inc. in strategic partnership with People Business, The Culture Factor Group – Hofstede & Onehub, is regarded as the international benchmark for assessing managerial and leadership effectiveness in Sri Lanka. Using the scientifically grounded D-ACTI 5X meta-analysis framework, the programme evaluates managers across five leadership pillars: Driving Results & Execution Excellence, Aligning Organizational Vision, Coaching & Developing Others for Growth, Building Team Effectiveness & Collaboration & Leadership Integrality & Holistic Approach.
Reflecting the depth and diversity of managerial capability within the organisation, five Union Assurance leaders were individually recognised across distinct award categories this year. Sashika Perera, Senior Manager – Statutory Reporting & Taxation, and Ishanthi Umedha, Head of Governance & Valuation, were recognised for ‘Demonstration of Well-Rounded Performance and Managerial Effectiveness.
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