Business

Proposed new Tourism Act comes under fire for ‘divorcing private sector involvement’

Published

5 years ago

2022/03/30

By Hiran H.Senewiratne

Leading travel and tourism industry specialists, Anura Lokuhetty and Nilmin Nanayakkara, both counting over 40 years of experience in the industry lashed out at the proposed new Tourism Act, which divorces the private sector involvement in the industry completely.

Both specialists stated in one voice to “The Island Financial Review” that, firstly, this is not the time to bring a Tourism Act and secondly, there was no need to bring a new Act. “This is detrimental to the entire industry. It dilutes the importance of the private sector, which contributes more than 90 per cent to the industry, they said.

Lokuhetty the former president of the Tourist Hotels Association of Sri Lanka (THASL) recalled that the Tourism Act was first introduced in 1968 and then a new one was introduced in 1978. It created four separate bodies overseeing, Tourism Promotion (SLTBP) Regulation (SLTDA) HR Training (SLITHM) and MICE (SLTCB).

Lokuhetty added: “The private sector plays a 99 per cent role in the industry and has invested billions of rupees to build hotels, maintain them and employ over 600,000 staff.

“The industry brings in around USD 4.5 billion annually (pre Covid-19 era), making it the third forex earner, contributing 12.6 per cent to GDP and there are around 2 million dependents on the industry.

“Unlike in other countries, Sri Lanka travel sector stakeholders did not retrench staff even when the hotels were closed down during Covid-19 and Easter Sunday attacks, shouldering that financial burden as well.

“In addition, we also provide 1 per cent from our turnover and not from profits to the government (in addition to other taxes) as a Tourism Development Levy which is used for promotions and other matters.

“Today there are over 38,000 rooms and 50,000 other accommodation providers, including home stayers, in the industry. Under the present Tourism Act the private sector is very well represented in these four bodies creating a ‘good mix’ and when key decisions are taken the private sector ‘voice’ is represented.

“Under the proposed Act, one body is going to be created scrapping three of the institutions (excluding SLITHM), which will weaken the say of the private sector when it comes to decision making in key sectors, like land allocations (tourism has a large land bank spread all over Sri Lanka), providing budgets for promotions, overseas tours and other key areas and there would be no proper ‘check and balance’ system. One other area is the maintenance and deployment of the TDL fund which is now worth several billion.

“The Act is also going to be passed in a major hurry and this also raises suspicions over the bona fides of bringing such an Act. Some stalwarts of the industry too are not briefed properly and their views too have not been sought out.

” If Sri Lanka Tourism wants to make changes, they can always bring in amendments and not a completely new Act also not at a time when hoteliers are facing the biggest threat to their survival.

“Arrivals have dropped due to Covid -19 and hoteliers are facing power cuts, lack of diesel and gas and also skyrocketing commodity prices and other issues and to burden them with a new Act does not ‘fit’ well at this time.”

Meanwhile, a Tourism Ministry official when contacted said that the industry would only gain by bringing a new Tourism Act since it would speed up decision-making and lead to the betterment of the industry. “Today we have to upkeep and coordinate four bodies and obviously when they are trimmed to two, there are advantages. Still, there would be representation from the private sector and already over 70 tourism associations have endorsed this and are eagerly waiting until it is implemented to reap benefits, he said.

The official added: “It’s the large tourism hoteliers who oppose this as they are only ones reaping benefits from the industry and don’t want ‘small players’ to propose and get involved in the decision-making process. We have also had a series of discussions with several bodies and have also obtained Cabinet approval for this new Act which will help to increase the benefits of the revenue from the industry among small timers as well.”

Meanwhile, Nilmin Nanayakkara, former president of the Sri Lanka Association of Inbound Tour Operators (SLAITO) said that the so-called 70 plus associations that Sri Lanka Tourism claims are supporting the industry were never even heard of four years ago and they have suddenly sprung up. “The leading associations are SLAITO, THASL, and ASMET (representing the SME sector) and all of them are against the Act. The current four bodies in tourism are not burdens but assets working towards the betterment of tourism as professionals are in them and they provide valuable inputs to the industry which are highly respected.”

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

8 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

8 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

8 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.