NDF MP Ravi Karunanayake, on Tuesday, raised concerns over, what he described as, a widening disconnect between record tourist arrivals and a weak foreign exchange inflow, warning that headline arrival figures were masking deep structural failures in Sri Lanka’s tourism sector.

Raising the issue under Standing Order 27(2) (20), Karunanayake noted that Sri Lanka recorded more than 2.36 million tourist arrivals in 2025, yet total tourism earnings had increased only marginally to about USD 3.22 billion. He said average spending per tourist had declined by nearly 12 percent year-on-year, while tourism-related foreign exchange inflows, reflected in the Central Bank’s reserves, had not grown in proportion to arrivals.

“This raises serious concerns about revenue quality, offshore settlements, informality and weak enforcement,” the MP said, pointing out that an estimated 40,000 hotel and accommodation entities were operating without registration.

Karunanayake sought clarification from the government on the structural reasons behind declining per capita tourism earnings, including changes in source markets, length of stay and pricing practices. He also asked for details of the actual volume of tourism-related foreign exchange converted through licensed commercial banks in 2025 and reflected in Central Bank reserves, and how this compared with earnings figures reported by the Sri Lanka Tourism Development Authority.

MP Karunanayake further asked whether the government had assessed foreign exchange leakages arising from offshore settlement by online booking platforms and the extent of tourism activity conducted by unregistered accommodation providers and informal operators outside the banking system. “Does the Government accept that a material share of tourism-generated foreign exchange is bypassing the domestic financial system and, therefore, not strengthening official reserves?” he asked.

The NDF MP also criticised weak enforcement of mandatory registration, banking channel settlements and foreign exchange repatriation requirements, despite existing legal powers. He urged the Government to present a tourism policy explicitly linked to earnings, foreign exchange inflows and reserve accumulation, rather than relying on headline arrival numbers.

Karunanayake additionally warned that overseas credit cards were widely used for tourism payments in Sri Lanka, with invoicing and settlement taking place outside the country, thereby avoiding domestic taxation. He said international booking platforms similarly processed payments offshore, depriving Sri Lanka of full taxable revenue, and asked what corrective action was being taken to address the issue.

The government requested time to respond to the queries raised by the Opposition MP.

By Saman Indrajith

Cinnamon Lodge Habarana and Habarana Village by Cinnamon distributed essential school supplies to students affected by the recent floods following Cyclone Ditwah. The distribution was focussed on schools in the Peradeniya and Gampola areas that suffered significant damage.

The project was a collective effort supported by the staff and welfare associations of several properties, including Trinco Blu by Cinnamon (represented by Lahiru Rathnayake), Cinnamon Citadel Kandy, and Kandy Mist (represented by HR Manager Chandran Solkar).

The primary recipient was Sri Bharathi Buddhist College in Peradeniya, where books and other educational equipment were handed over. Additionally, relief items were distributed on the same day to students at Peradeniya Junior School, Atabage Rajananda Vidyalaya, and Atabage Udugama Maha Vidyalaya.

By S.K. Samaranayake

The government will put in place a mechanism, coupled with an appropriate legal framework, to bring together university academics, experts and other stakeholders to address issues that may arise during the implementation of education reforms.

President Anura Kumara Dissanayake said so during a discussion with the Federation of University Teachers’ Associations (FUTA) yesterday at the Presidential Secretariat, according to the President’s Media Division (PMD).

During the discussion, FUTA members pointed out the difficulties faced in implementing education reforms through the framework of the National Institute of Education in line with existing laws and regulations.

They further emphasised that while the Association acknowledges the necessity of new education reforms, the urgency of such reforms is greater for students in rural schools, compared to those in urban areas, the statement said.

FUTA also expressed appreciation for the Government’s decision taken, under the leadership of the President, to address issues related to education reforms and affirmed its willingness to contribute to the reform process.

As a continuation of previous discussions, proposals aimed at resolving challenges faced by academics within the university system, along with possible solutions, were presented to the President. In response, President Dissanayake emphasised that the Government would take all possible measures to safeguard the university system and further strengthen education.

The discussion also included proposed amendments to the Universities Act, the PMD added.

The President further noted that following the recent disaster, the Government has been effectively implementing a nationwide rebuilding programme, focused on economic stability, development and other critical sectors, and called on university academics to actively support these reconstruction efforts.

The meeting was attended by Minister of Ports and Civil Aviation Anura Karunathilaka, along with FUTA representatives, including its President Prof. P. R. Weerathunga, Vice President M. A. M. Sameem and Secretary Charudaththe Ilangasinghe.