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SL’s niche tourism could suffer from an absence of Israeli tourists – Andre Fernando

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Andre Fernando

By Harischandra Gunaratna

While Israeli tourists represent a notable segment, they do not dominate Sri Lanka’s overall tourist arrivals. However, their absence could still have a ripple effect on specific sectors, particularly in niche areas like adventure tourism, eco-tourism and local businesses that cater to backpackers and mid-range travelers. Smaller hotels, hostels and restaurants in popular Israeli tourist spots like Arugam Bay and Ella could face short-term revenue losses, Managing Director, MAC Holdings (Private) Ltd. Andre Fernando told The Island Financial Review in an interview.

Extracts from the interview: ‘In the grander scheme however, Sri Lanka’s tourism industry may not be severely impacted by the absence of Israeli visitors alone. Given the current state of global tourism, where many countries are diversifying their tourist profiles post-pandemic, Sri Lanka can mitigate potential losses by targeting emerging markets or enhancing promotional efforts in its more established tourist countries.

‘The presence of Israeli tourists in Sri Lanka does raise legitimate concerns about security, particularly given the volatile situation in the Middle East. Israel has been involved in numerous geopolitical conflicts and Israeli nationals are sometimes targeted in acts of terror or political violence, both at home and abroad. But this risk can’t be identified and isolated to Sri Lanka alone.

’Today terrorism is a common issue faced by the world and not necessarily common to Sri Lanka. However, the art of the suicide terror missions commenced here during the North- East war. Traveling on a busy London tube, holidaying in a Bali resort or walking on a New York street could be riskier for them, than visiting Arugam bay in Sri Lanka. So don’t forget that there are many other destinations that Israeli tourist do visit.

‘In Sri Lanka’s case, the concern would be whether Israeli visitors might become targets for extremist groups, thereby posing a broader security risk to the general tourist population. Sri Lanka has already experienced the devastating consequences of such terrorist attacks, most notably the 2019 Easter Sunday bombings, which targeted churches and luxury hotels, causing a significant decline in tourist arrivals.

‘However, it is essential to note that the Sri Lankan government has substantially strengthened its security apparatus since those attacks, improving intelligence-sharing, airport security and hotel safety protocols. While the presence of Israeli tourists could make certain locations more attractive to potential attackers, it is unlikely that this would lead to a large-scale security threat for all tourists. Sri Lankan authorities are well aware of the need to ensure a safe and secure environment for both local citizens and international visitors.

‘While the absence of Israeli tourists would have some economic impact on specific sectors & areas, it is unlikely to cripple Sri Lanka’s tourism industry as a whole. On the other hand, their presence, given the current security landscape does raise legitimate concerns about targeted attacks, but the overall risk to other tourists remains relatively low.

‘The challenge for Sri Lanka will be to continue strengthening its security measures while maintaining an open and welcoming environment for visitors from all nations, including Israel. For the tourism industry to thrive, perception matters as much as reality. Ensuring the safety of all tourists, whether Israeli or from any other country, will be crucial in maintaining Sri Lanka’s reputation as a safe and desirable destination.’



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A sustained wave of Indian assistance to Sri Lanka showcases defining shift in developmental diplomacy

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Transport Minister Bimal Rathnayake and Indian High Commissioner Santosh Jha at the plaque unveiling ceremony for the Moragahakanda Bridge project, supported by Indian grant assistance.

By Sanath Nanayakkare

An evolving approach to regional diplomacy was brought into sharp focus with the recent foundation-laying ceremony for the Moragahakanda Bridge in Matale.

Jointly launched by Indian High Commissioner Santosh Jha and Minister of Transport, Highways and Urban Development Bimal Rathnayake, this 175-metre span is far more than a routine civil engineering project. It serves as the physical manifestation of a broader USD 450 million reconstruction package deployed by India in the wake of Cyclone Ditwah, which severely fractured the island’s transport arteries.

Foreign aid is too often discussed in cold, macroeconomic abstractions. Yet, every so often, a consistent pattern of targeted assistance alters the landscape of bilateral relations, offering a clear window into how regional partnerships evolve out of necessity and goodwill.

Across the country today, a remarkable narrative of multi-layered cooperation is unfolding.

From critical post-disaster infrastructure and maritime routes to grassroots agricultural uplift and institutional capacity-building, India’s developmental footprint is shifting unmistakably toward an organic, people-centric model of shared resilience.

What distinguishes this latest wave of assistance is its deliberate pivot from emergency support to permanent, climate-resilient transformation. When Cyclone Ditwah initially paralysed regional connectivity, India’s immediate response was marked by the rapid deployment of temporary Bailey bridges.

Today, that swift humanitarian intervention has matured into a structural blueprint: the Moragahakanda project stands as the vanguard of 13 permanent bridges being built across Sri Lanka’s provinces by IRCON International Limited, complemented by upcoming railway upgrades and modern signaling systems backed by a USD 250 million Line of Credit.

The true signature of this diplomatic shift lies in its breadth, operating simultaneously across multiple tiers of society:

Institutional Governance: Delegations of Sri Lankan parliamentarians and senior administrative officers regularly travel to India to study public policy frameworks, legislative systems, and administrative practices.

Economic Lifelines: Financial mechanisms, such as viability gap funding for the Nagapattinam-to-Kankesanthurai passenger ferry service, continue to shrink geographical distances, reviving coastal commerce and tourism.

Grassroots Empowerment: Specialised capacity-building programmes tailored for local stakeholders – ranging from state officials to rural dairy farmers -ensure that development reaches deep into the island’s hinterlands.

By aligning immediate disaster relief with long-term infrastructure, institutional capacity, and human capital, India and Sri Lanka are demonstrating how neighbours can build safer, more connected futures together, grounded firmly in mutual respect and tangible progress.

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Bring your own bag to book fair, CEA urges

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By Ifham Nizam

The Central Environmental Authority (CEA) yesterday urged visitors to the Colombo International Book Fair to bring reusable bags to carry their purchases, as part of a drive to reduce single-use plastic waste at the event.

CEA Director General R. S. P. Kapila Rajapaksha said large quantities of plastic, particularly “sili sili” bags, had been used to carry books at previous book fairs.

“We urge visitors to bring an environmentally friendly, reusable bag when they come to buy books. This simple step can help reduce the use of single-use plastic and protect the environment,” Rajapaksha said.

The book fair opens on September 25, with the CEA and the Sri Lanka Book Publishers’ Association launching an awareness programme targeting book sellers, food vendors and visitors.

The programme will be conducted under the theme “Read Smart, Carry Smart”, focusing on reducing polythene and plastic use throughout the exhibition.

The CEA said the use of plastic bags is also subject to regulations issued under the Consumer Affairs Authority Act. Gazette Extraordinary No. 2456/41, dated October 1, 2025, prohibits the free distribution of handled “sili sili” bags to consumers. Where such bags are sold, the charge must be included in the customer’s bill.

The CEA said food outlets at the book fair would also be required to comply with regulations prohibiting a range of single-use plastic products.

These include plastic straws and stirrers, disposable plastic plates, cups, spoons, forks and knives, as well as polythene-based food wrappers commonly known as lunch sheets.

The CEA said it had discussed the requirements with relevant stakeholders and reached agreement to ensure that prohibited products are not used at food outlets within the exhibition premises.

The authority urged both traders and visitors to cooperate with the initiative and help make this year’s book fair a more environmentally responsible event.

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Japanese investor Yoshimichi Watanabe backs Hunas Holdings

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Yoshimichi Watanabe / Tanaka - Director Hunas Holdings PLC

Partnership signals renewed foreign investor confidence in Sri Lanka as a destination and in the long-term growth of its hospitality sector

Japanese investor Yoshimichi Watanabe has entered into a partnership with Colombo Stock Exchange-listed Hunas Holdings PLC, in a move that comes as the diversified conglomerate prepares a significant expansion of its hospitality and real estate interests in Sri Lanka.

The partnership brings foreign capital and international market experience into one of Sri Lanka’s fastest-diversifying listed groups at a point when the Group is actively building out its pipeline across both sectors. Hunas Holdings is currently evaluating a series of hospitality and real estate developments in Sri Lanka, with further announcements expected in the coming months.

Hunas Holdings PLC operates across hospitality and leisure, real estate, renewable energy and agriculture, with a hotel portfolio that includes Hunas Falls in Elkaduwa

For Sri Lanka, the significance of the partnership extends beyond the two parties. Inbound investment of this nature, from an investor with direct and sustained experience of the market, is a measure of returning confidence in the country as a destination and in the underlying fundamentals of its hospitality sector, at a time when the industry is repositioning towards higher-value, experience-led travel.

Watanabe brings investment experience across e-commerce, hospitality and real estate in Japan and in international markets including Bali, Indonesia. He has also maintained a relationship with Sri Lanka over many years, having made multiple investments in the country, giving him first-hand insight into its business environment, regulatory landscape and long-term potential.

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