News
Sri Lanka’s Tourism resilient amid challenges
Industry leaders call for strategic overhaul and sustainable growth
By Rathindra Kuruwita
Several Western countries have issued travel advisories cautioning their citizens against visiting Arugam Bay, yet this has not triggered a mass exodus of tourists, according to Nayana Udayapriya Kumara, President of the Sri Lanka Hotel Owners’ Association (SLHOA).
“There are approximately 3,500 hotel rooms in the Arugam Bay area, and initially, there was significant concern among both tourists and hotel owners over the advisories,” Kumara said. “Everyone feared a repeat of 2019. However, we are pleased with the government’s response. There is optimism, as around 85 percent of travellers who were here when the advisories were issued have stayed on.”
Kumara mentioned that about 15 percent of bookings for November have been cancelled in SLHOA member hotels in Ella and Tangalle. Nevertheless, he noted that under normal circumstances, there was a typical cancellation rate of 10-15 percent.
Tourism in Sri Lanka faces considerable challenges, especially given the competition from destinations like Thailand and Cambodia, which are more affordable, Kumara stated. “We’ve never had a strong tourism promotion strategy. It’s been years since we carried out a global campaign. Hotels contribute to a tourism development levy, but these funds haven’t been effectively utilised,” he added.
In recent years, approximately 80 percent of Sri Lanka’s trained hotel workforce has left the industry, Kumara explained. “Many hotels closed down due to COVID-19 and the economic crisis, leaving employees with no option but to move on. Now, as tourists are returning, we are struggling to find qualified staff to maintain quality service. There are numerous vacancies at a time when unemployment is high, but government agencies have shown a very lukewarm attitude.”
Kumara suggested that the government could establish a dedicated university for tourism professionals, offering programmes ranging from short-term certificates to degree-level qualifications.
Anura Lokuhetty, Immediate Past President of The Hotels Association of Sri Lanka, highlighted that Sri Lanka’s lack of a coherent tourism policy remains a major issue. He pointed out that many investors in the hotel sector have yet to recoup their investments. “Hotels that opened after 2017 have faced severe challenges: the Easter Sunday attacks in 2019, COVID-19 from 2020 to 2021, the economic crisis in 2022, which brought long power cuts and fuel shortages, and most recently, visa issues. Despite all this, the industry continues to persevere,” he said.
Lokuhetty emphasised the need for sustainable tourism, warning against compromising Sri Lanka’s natural beauty and biodiversity for short-term gains. “Look at Yala National Park, where we allow too many vehicles and visitors. And at Sigiriya, there’s an optimal visitor capacity that should be respected. Unfortunately, state institutions haven’t addressed these issues.”
Sameera Senaka de Silva, President of the All Ceylon Small and Medium-Scale Tourism Entrepreneurs’ Association, commented on the intense competition for tourism in the region. He noted that, under such conditions, some countries might resort to underhand tactics to attract travellers away from their competitors.
News
PM participated in ’Swarnabhivandana 2026,’ Sacred Relic Veneration Ceremony
In line with the 2026 Vesak Poya Day, the ‘Swarnabhivandana 2026’ Sacred Relic Veneration ceremony, organized by the Sri Sudarshanarama Temple, Kiribathgoda under the guidance of the Chief incumbent of the temple, and the Head of the Department of Pali and Buddhist Studies at the University of Ruhuna and a Senior Lecturer Ven. Makola Mangala Nayaka was held on 3rd of May with the participation of Prime Minister Dr. Harini Amarasuriya.
The Prime Minister stated that it was a rare privilege to take part in such a noble religious event. She noted that devotees have been presented with a rare opportunity to venerate sacred relics, including those of the Supreme Buddha and Maha Arahants of Seewali, Angulimala, Anuruddha, and Mihindu Theros.
She further emphasized that such religious programmes contribute to the spiritual development of society and help invoke blessings upon the country.
The Prime Minister also expressed her sincere gratitude to the Chief Incumbent Thero for his guidance in successfully organizing this meritorious event, as well as to the Dayaka Sabha of the temple and all those who contributed with dedication.


[Prime Minister’s Media Division]
Latest News
Heat Index at Caution Level in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Colombo, Gampaha, Hambantota and Monaragala districts during the day time
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 03 May 2026, valid for 04 May 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Colombo, Gampaha, Hambantota and Monaragala districts during the day time.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
USD 3.7 bn H’tota refinery: China won’t launch project without bigger local market share
China has declared that China Petroleum and Chemical Corporation (SINOPEC) will not proceed with the USD 3.7 bn Hambantota oil refinery project unless a consensus could be reached on the percentage of the output that could be sold in the local market.
China has informed the NPP government that SINOPECwill not be able to sustain the project in terms of the original agreement that stipulated that 80% of the output be exported and 20 % sold in the Sri Lankan market, according to sources familiar with the issue.
Once fully operational, the strategic facility will be able to process 200,000 barrels of crude oil a day. The proposed facility, together with the Hambantota International port, which was taken over by China in 2017 on a 99-year lease, emphasise significant Chinese presence in the country.
SINOPEC with about 12% market share is among the foreign companies engaged in fuel distribution in Sri Lanka at the moment. Other foreign players are Lanka India Oil Company (LIOC) and joint venture by Shell Brands International AG (Shell) and RM Parks (Private) Limited, the latter being the latest entrant.
LIOC entered the market way back in 2003 during Ranil Wickremesinghe’s tenure as the Prime Minister. LIOC holds the second biggest market share with 211 fuel stations with SINOPEC being third and joint Shell Brands International AG (Shell) and RM Parks (Private) Limited in fourth place. CPC remains the market leader with some 800 odd fuel stations countrywide.
Sources said that whatever the Chinese and Sri Lankan government representatives said in public the launch of the project primarily would depend on a new formula. The Island learns that the Chinese expect to sell 30% of the output here. “The Chinese are of the view that 20% share is not sufficient to sustain the project,” sources said.
Sri Lanka and China in January 2025 announced plans for the SINOPEC project dubbed the largest single Chinese direct investment here following President Anura Kumara Dissanayake’s three-day state visit to Beijing. Dissanayake’s delegation included Minister of Foreign Affairs, Employment and Tourism Vijitha Herath, Minister of Transport, Highways, Ports and Civil Aviation Bimal Rathnayake, and Sri Lankan Ambassador to China, Majintha Jayesinghe. Outspoken Chinese Ambassador to Sri Lanka Qi Zhenhong was also present at all key meetings with representatives of China Petrochemical Corporation (SINOPEC Group), China Communications Construction Company Ltd (CCCC), China Merchants Group (CMG), Huawei, and BYD Auto, a leading company in the automobile manufacturing sector.
Pointing out that Sri Lanka and China hadn’t been able to resolve the knotty problem for about 15 months, sources said that Sri Lanka was also under pressure from India to expedite the Trincomalee oil tank farm development project. Sri Lanka finalized an agreement with India and United Arab Emirates (UAE) in early April 2025 to develop Trincomalee as an energy hub.
Sources said that in line with the overall plans involving China as well as India-UAE, Sri Lanka was required to enhance the fuel storage facilities as soon as possible. The ongoing West Asia conflict underscored the responsibility on the part of the incumbent dispensation to take tangible measures to enhance storage facilities.
The Trincomalee and Hambantota projects could be on a collision course, sources said. The likelihood of Indo-Lanka agreements in respect of WW two era oil tank farms in Trincomalee, particularly the one negotiated during Gotabaya Rajapaksa’s presidency having animpact on the Hambantota oil refinery couldn’t be ruled out, sources said.
President Dissanayake during his May Day address disclosed the crisis faced by his government in ensuring uninterrupted oil supplies. Dissanayake said that the government had no option but to increase fuel quotas given to various categories in view of the arrival of fuel ships in Colombo as Sri Lanka lacked storage facilities.
Sources said that energy insecurity was at stake due to the continuing instability in the global markets caused by US actions in Hormuz Strait.
Newly-appointed Energy Minister Anura Karunathilake is believed to be engaged in consultations with relevant parties. Earlier Punyakumara Dissanayake who resigned recently over the coal scam handled the Hambantota refinery matter.
by Shamindra Ferdinando
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