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Lanka’s tourism push struggles amid internal, external concerns

Published

4 years ago

2022/11/13

By MAHADIYA HAMZA

ECONOMYNEXT – Sri Lanka’s tourism revival is facing a challenge in bringing in more high spending foreign visitors due to increasing protests locally while monetary tightening, impacts of Russian invasion into Ukraine, and rising inflation globally.The move is likely to slow the island nation’s recovery from the unprecedented economic crisis as it is unlikely to achieve its expected revised down tourism revenue target of $1.5 billion.

The number of arrivals suffered in September and fell to as low as 29,000, its lowest in 11 months. The tourism authorities have cited “bad publicity” about Sri Lanka in the international media including global reportage of fuel and food scarcity as the key reason for the drop.

Monthly arrivals to the Indian Ocean island nation plummeted in September to around 29,000 from as high as 106,000 in March this year mainly due to the economic crisis which later turned into a political crisis and forced then president, prime minister and the government to resign amid public protests.In October, however, the arrivals rebound by 41 percent from the previous month to 42,000.

The industry was hopeful of cashing in on winter holiday makers during the three months from November and marketing the country as an economical holiday destination amid growing commodity prices in the West after the Ukraine war.The plan was to attract long-haul travelers with sharp depreciation of the rupee causing foreigners to spend more.However, a growing crisis globally will pinch on the island’s tourism sector despite the vigorous efforts the industry has taken to come out of the economic and political crisis this year, industry analysts say.

The tourism authorities’ attempts to promote Sri Lanka among foreigners including in India, Europe, and the United States have yet to see some significant returns.

“Sri Lanka had the Russian airlines issues, the protests in the country and the travel advisory placed on it. But it has fought against all that,” Priyantha Fernando, Chairman of Sri Lanka Tourism Development Authority told EconomyNext, referring to Russian Aeroflot’s decision to suspend Sri Lankan operation over a legal battle.

“However we cannot do anything about the external issues. There are long queues forming in European and Western countries too,” he said referring to gas and fuel queues.

“Those factors cannot be controlled.”

Global tourism industry has grown by 60 percent in the first seven months of this year compared to the previous year, according to a recently published United Nations World Tourism Organization (UNWTO) report.However, it is only “cautiously optimistic” as the global economic environment still has not recovered.

The UNWTO cautions that the combination of tightening monetary policies in all major economies to curb rising inflation, increasing energy and food prices, and the growing prospects of a global recession as indicated by the World Bank, are major threats to the recovery of international tourism through the remainder of 2022 and 2023.”

“The uncertain economic environment seems to have nonetheless reversed prospects for a return to pre-pandemic levels in the near term,” UNWTO said.

“Rising inflation and the spike in oil prices results in higher transport and accommodation costs, while

putting consumer purchasing power and savings under pressure.”

Locally, Sri Lanka is threatened by reemerging protests against increasing taxes, and long delayed reforms, which have become mandatory for an International Monetary Fund (IMF) loan to move away from economic crisis. The IMF backing is now seen as a must for other countries and multilateral creditors to support the island nation to face the economic crisis.

The government has aimed at a revised down $1.8 billion foreign inflow from tourism this year in October after aiming at $2.5 billion in March. However, industry officials now say, they can only reach less than $1,5 billion revenue in 2022.

Sri Lanka so far has generated 568,258 travelers for the first 10-months.After Russia recommenced flights to Sri Lanka in October, four months after suspending the operations following a legal spat, Russian tourist numbers have started to rise compared to the previous months.Many airlines have now resumed flights to Sri Lanka including Russia-based Aeroflot and AZUR as well as Air France in the last one month.

“There’s a slight pick up (hotel booking) with some Indian traffic and Sri Lankan expatriates at the moment. But we believe the actual pick up will start from January next year,” Sanath Ukwatte, immediate-past President of the Hotels Association of Sri Lanka.However, industry experts say Indian tourists usually do not spend much like European tourists, which is the island nation’s key market.

Russia and its neighborhood countries show better arrivals, but they mainly go to resorts, instead of city hotels where the bulk of hotel rooms are available.

“Hotel bookings are averaging around 30% and we hope it to increase to about 40% by December, it is still way below our pre-covid levels,” Ukwatte said.

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Iranian ships stranded, Lanka fears US sanctions

Published

8 hours ago

2026/10/11

Thilina Walpola

‘Companies may face US sanctions’: Lanka to put ‘national interest’ first as 19 Iranian vessels seek help

(ToI) Sri Lanka said on Friday it would “prioritise our national interests” before providing assistance to the crews of 19 Iranian ships anchored in international waters near the island nation.The crews are facing shortages of food, water and fuel. A foreign ministry spokesperson cited the risk of US sanctions against Sri Lankan companies supplying the vessels as a key concern.

The United States and Iran have been at war since February 28, when the US and Israel launched joint strikes against the Islamic Republic.

“Sri Lanka will put its national interest first before considering any help, and the companies that supply ships are aware of possible secondary sanctions from the United States,” spokesperson Thushara Rodrigo told reporters, ruling out any immediate assistance to the vessels.

Rodrigo clarified, however, that Sri Lanka had received no communication from the United States warning of repercussions if it decided to assist the vessels.According to Rodrigo, the ships are stationed 24 nautical miles off Sri Lanka’s coast.The Iranian Embassy said it had no information on the matter.

In March, a US torpedo attack sank the Iranian naval vessel IRIS Dena in Sri Lankan waters, killing 87 sailors.

The ship was returning to Iran after participating in a naval exercise at India’s invitation. A second Iranian vessel was brought to a Sri Lankan port after its crew reported technical problems.

Wounded sailors were treated at Sri Lankan hospitals, while those rescued from the second vessel were safely repatriated to Iran.

Sri Lanka is still recovering from an economic crisis, with both the United States and Iran serving as important trading partners. Washington played a key role in securing an International Monetary Fund bailout and supporting Sri Lanka’s agricultural sector to help avert a food crisis.

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Sri Lanka CERT warns of overseas university admission scams

Published

8 hours ago

2026/10/11

Thilina Walpola

Sri Lanka CERT has warned the public of fraudulent social media advertisements offering admission to foreign universities after receiving complaints from parents and students who have lost hundreds of thousands of rupees to scammers.

The fraudsters reportedly pose as representatives of reputed foreign universities, promising admission, student visas, work permits and even eventual citizenship in return for registration fees and initial tuition payments.

They use convincing videos, photographs and documents circulated via email and WhatsApp to gain the confidence of unsuspecting victims before asking them to transfer money to foreign bank accounts. The scammers then disappear after receiving the payments, Sri Lanka CERT said.

The agency has urged prospective students and their parents to verify the authenticity of university representatives, documents and bank account details before making payments, and to seek overseas education opportunities only through legitimate and recognised channels.

News

Navi Pillay’s Lankan affairs in focus as she wins 2026 Nobel Peace Prize

Published

8 hours ago

2026/10/11

Thilina Walpola

Navi Pillay

Former UN High Commissioner for Human Rights and International Court of Justice judge Navanethem “Navi” Pillay has won the 2026 Nobel Peace Prize for her contribution to international law and efforts to promote peace, the Norwegian Nobel Committee announced in Oslo on Friday.

Announcing the award, committee chairman Jørgen Watne Frydnes said Pillay had “significantly enlarged the scope and impact of international law” and helped advance “a more comprehensive global legal order” with exceptional courage. He also praised her long career, which began as a lawyer confronting deep-rooted discrimination in South Africa, and described her as a person with a “firm moral compass”.

Pillay, 85, served as the UN High Commissioner for Human Rights from 2008 to 2014. Her tenure brought her into sharp focus in Sri Lanka, particularly over her assessment of the country’s human rights situation in the aftermath of the decades-long civil war.

During an official fact-finding visit to Sri Lanka from August 25 to 31, 2013, Pillay travelled to areas including Jaffna, Kilinochchi and Trincomalee, where she met civil war survivors, families of the disappeared and local communities.

Following the visit, she warned that Sri Lanka was moving towards authoritarianism and highlighted what she described as a persistent climate of fear.

She also reported intimidation and harassment of people who had sought to meet her during the mission.

Pillay urged the UN Human Rights Council to establish an international inquiry mechanism to investigate alleged war crimes and crimes against humanity committed by both government forces and the LTTE during the final stages of the 26-year civil war.

Her observations and recommendations became a significant part of international scrutiny of Sri Lanka’s post-war human rights record.

The Norwegian Nobel Committee received 287 nominations for this year’s Peace Prize, slightly more than a quarter of them being organisations. The committee traditionally considers efforts to promote peace, international fraternity and institutions that contribute to lasting stability.

Last year, Venezuelan opposition leader Maria Corina Machado won the prize for her campaign for a democratic transition in Venezuela. She was praised as a woman who kept the flame of democracy burning amid growing darkness.

The 2026 award marks the 125th anniversary of the Nobel Peace Prize, first presented in 1901. Over its history, the prize has recognised prominent figures and organisations involved in advancing peace, human rights and international cooperation.