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

At the request of the Supreme Court of Sri Lanka and Sri Lanka Judges’ Institute, a special capacity-building programme for 30 District Court Judges from Sri Lanka was organised at the Indian National Judicial Academy, Bhopal, from 12 to 16 January 2026, the Indian HC said.

IHC statement: “The week-long programme encompassed eleven sessions covering key themes such as court and case management for efficient judicial systems; juvenile justice; judicial interventions to combat money laundering; sentencing procedures and related challenges; environmental law jurisprudence; electronic evidence and cybercrime; the use of forensic evidence in civil and criminal trials; judicial stress management and wellness; among others. In addition, the programme featured educational visits, including a field visit to Sanchi, aimed at providing cultural exposure.

The programme was organised under the enhanced capacity building framework announced by Indian Prime Minister Narendra Modi during his State Visit to Sri Lanka in April 2025, whereby 700 customised slots annually for Sri Lankan professionals were added over and above all existing schemes such as ITEC. With around 300 Sri Lanka civil service officers being trained annually under a MoU between the National Centre for Good Governance of India and the Sri Lanka Institute of Development Administration, the enhanced capacity-building endeavour of India thus now benefits 1000 Sri Lankans annually.”

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