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Whither Sri Lanka’s tourist industry?

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Some niche markets to develop

by Mahendra Amarasuriya

The present serious economic crisis the country has fallen into cannot be overcome without the development of value added exports, tourism, and remittances from Sri Lankan expatriates, many of whom are very poor women who go in search of employment overseas in order to improve the lives of their families at serious costs to their own life and well being .Out of these the tourist Industry can be considered to be “one of the low hanging fruits” , the development of which has a great deal of potential, considering the wonderful natural resources our little country has, very attractive to tourists. Our country has only 65,000 sq. km. in land area but is an island possessed of some of the finest natural beaches in the world. In fact one of its famous beaches at Unawatunna was recognized as one of the best beaches in the world quite some time ago.

It also has a tremendous variety of agro climatic zones ranging from purely tropical at sea level and going up to over 6,000 ft, resembling a Mediterranean climate. There are many ancient cities going back to over 2,000 years and a recorded history and culture of around 2,500 years.

The tourist Industry does have tremendous potential which in my opinion has not been properly exploited in order to make maximum use of the varied and diversified resources available in this small but beautiful country.

Tourism was growing reasonably well, and had achieved arrivals of 2.33MN tourists in 2018, which I believe was the highest to date. Unfortunately, thereafter, the Easter Sunday massacre and the Covid pandemic hit us like many other countries and almost completely destroyed the tourist industry which plunged to 194,495 arrivals in 2021. We are now on a recovery phase with over a million tourists arriving to date in 2023, against I believe an amended target of 1.5 mn arrivals by end of this year.

However, in my opinion, it is the tourist guest nights that matter where income is concerned and of course the room occupancy rates. In 2018, the tourist guest nights amounted to 25,205. Gross tourist receipts amounted to 711,961 mn. SLR and per capita tourist receipts amounted to Rs. 305,066. Tourism also creates many employment opportunities and according to the Central Bank reports 2020/2022 , total employment in 2018 was 388,487 and in 2019 402,607 .

On this basis , the per capita income per tourist in 2018 amounted to Rs. 305,066 and in 2019 Rs. 337,755 . What should the strategy be for the future?. Are we intending to attract mass tourism with average or low spending tourists or make a serious attempt to attract the high end tourist clientele . I believe the Minister of Tourism is projecting to increase the arrivals to five million in a couple of years and the President has made a suggestion to target 10 mn. by 2030.

Sri Lanka being a relatively small country, though it has many tourist attractions in my opinion, should project for only a limited number to be decided upon by the authorities because the popular tourist attractions like Sigiriya, Anuradhapura and Polonnaruwa and the Wild Life Sanctuaries, especially Yala are over-visited with far too many tourists visiting for them to be sustainable in the long term.If we merely increase numbers of average and low-end tourists, we will only increase the footfalls at our main tourist destinations, which may not be able to sustain very large numbers without a parallel increase in our tourism earnings to develop these locations. In the long run, this may be an unsustainable strategy.

It is necessary to differentiate our tourist industry and target new niche markets which are easily accessible. Before I identify a few of them, we must accept the fact that such high-end tourist would not wish to spend time on our roads in traffic jams before they reach their destination. Travel time to the ultimate destination is of great importance and our roads are not up to the standards, that such tourist are used to.

Fortunately, we now have the express way to Colombo from the BIA, but after visitors arrive in Colombo, many are not interested in staying in the city but have planned to visit various well known tourist destinations. The travel time to get to them is far too long.

For instance, despite the Southern Expressway which can take you to Hambantota in about two and a half hours, it takes 45 minutes to one hour to entern the expressway from the Colombo City. There are other expressways planned, but we can hardly afford them in our present economic condition.

One way of getting over this problem, is to develop a network of domestic airports enabling travel to popular destinations directly from the BIA. At every tourist center, we should have an airport which can accommodation smaller aircraft. Many such airstrips are available. For instance, the one at Koggala which was used by the British during the war, can easily be used to service southern tourist locations.

There are also airstrips at Sigiriya and an SLAF base at China Bay near Trincomalee. There are airstrips at Weerawila and Sigiriya and of course the Mattala International Airport.A new airport will have to be developed for the Central Province. We already have Palaly in Jaffna. Developing airports to service popular tourist destinations can be carried out on a PPP (Public Private Partnership) basis and the private sector will definitely be interested in investing in such developments. If such a network is established, a tourist can fly from BIA to these destinations within hours of arrival and thereby not waste time on our poor road network.Let me now identify some possible niche markets….(1).

Golf Tourism

. Golf is a game played by the more affluent people in the world. Many of them are crazy about playing golf regularly. In popular golf playing nations like Japan, Korea, USA and some European countries, it is difficult for many people to get a game of golf, due to the high popularity of the game and lack of sufficient courses. I am told that some Japanese travel for more than two hours, just to get a game of golf. In this scenario, there are people who are willing to fly to new destinations, sometimes even for a weekend of golf.

To accommodate these golf addicts, we must try to promote the development of a golf course at every popular tourist destination for instance (1). Around Bentota , Galle, Hambantota already has a small golf course at Shangri-La hotel, Central Province has the Victoria Golf Course, and two more should be established, one in Batticaloa and one in Trincomalee.

With this net work of golf courses, golf tourists can easily be accommodated and they are high-end tourists . One may ask, where is the funding for such developments. Such funding should come from foreign investors and the BOI must be given a target of attracting such investments within a short period. It may also be queried as to why we need so many golf courses. It is because tourists at every tourist center should have the use of a golf course. Interestingly, Singapore, a much smaller country than Sri Lanka has 16 golf courses.

(2). Yachting Tourists. There is a whole band of people who spend most of their time in the high seas, traveling from one destination to the other. There were many such yachts utilizing the Galle Harbour in the past. But I am told that the costs have gone up and the services provided are not up to standard and the popularity has decreased. Galle Harbour can easily be developed into a Yacht Harbour by creating an infrastructure of restaurants, hotels, cinemas, etc. to service these sailors and their yachts while they spend a few days on land.

There is a Marina planned at the Ports City in Colombo. I believe the intention is to make it a world class marina. So together Galle and Colombo can attract many people sailing yachts.

(3). The Boating Industry appears to be making a lot of headway and there are local boat builders manufacturing small and medium size boats. These can be used for cruises around the island which will attract many people, who love the sea and are interested in spending their time sailing around Sri Lanka.

(4). Adventure Tourism… There is great potential for Adventure Tourism, including hill climbing, as Sri Lankas topography is such that there are many small hills and mountains that can be scaled.

(5). Cycling Tourism. There are many tourists who are interested in cycling and our island is well roaded and relatively safe and can certainly attract many cycling tourists. At sea level, they can cycle right round the island. If they venture inland, there are many interesting routes for cycling up to the hills in the center of the island.

(6). Nature Tourism. Sri Lanka is considered to be hot spot in biodiversity. Many nature lovers can be attracted for instance. It is a paradise for bird watchers with over 528 species of birds, both migratory and endemic. Thirty four are endemic but many migratory birds fly here during winter in the western hemisphere. It is interesting that they choose Sri Lanka, but my guess is that since we are situated at the Southern most point in this area, with no land mass, beyond until the South Pole, migratory birds naturally end up in Sri Lanka. We have observed many migratory birds, even in Colombo during the western winter. Furthermore, in the wetlands around Colombo, many species of birds have been observed by bird watchers.

Then there is the largest primary tropical rain forest of over 36,000 hectares. Sinharaja has 60% of endemic trees and numerous species of Sri Lankan mammals and butterflies and many endemic species of reptiles and amphibians. A walk through Sinharaja with its eight beautiful waterfalls is an experience of a lifetime. Sinharaja is also a World Heritage site.

These are few of the niche markets that I have identified. Possibly there are many more and it is up to the tourist industry to create niche markets for attracting high-end tourists. We may not be able to attract hundreds of thousands of such high-end tourists, but even four to 500,000 will bring us more income than over a million average tourists .

Unless we follow such a strategy, just increasing numbers will not suffice and can even become counter productive, as too many low end tourists can only to an extent destroy our environment without providing us with a substantial dollar income per tourist for reinvestment and development.

(The writer is a former Chairman Commercial Bank PLC, United Motors PLC, Pelwatte Sugar Industries PLC, Deputy Chairman Hayleys PLC, Former Chairman Employers Federation and Planters Association of Ceylon).



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Features

The challenge of being positive about SAARC

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The RCSS forum addressed by SAARC Secretary General Ambassador Md. Golam Sarwar in progress. (Pic courtesy RCSS)

It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.

Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.

However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?

There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.

The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.

Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.

Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.

The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.

On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.

In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.

Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.

Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.

The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.

These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.

Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.

There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.

However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.

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OPA seminar examines Sri Lanka’s economic recovery, resilience and growth pathways

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(L to R) Dr Achinthya Koswatte, Anushan Kapilan, Dr Harsha Aturupane, Bhanu Wijeyaratne, Vice President, OPA and moderator of the discussion, and Eng Chamil Edirimuny, General Secretary, OPA, at the head table.

A seminar, “Sri Lanka’s Economic Crossroads: Navigating Recovery, Resilience and Growth” was recently held by the Organisation of Professional Associations of Sri Lanka (OPA) at the OPA Auditorium, bringing together economists, OPA members, and professionals from diverse fields for an insightful discussion on Sri Lanka’s economic recovery and future growth prospects.

The event was held under the patronage of Jayantha Gallehewa, President of the OPA, and was jointly organised by the National Issues Committee (NIC) and the Seminars, Workshops and Programmes Committee of the OPA. The event reaffirmed the organisation’s commitment to advancing professional excellence, fostering insightful intellectual engagement, facilitating interdisciplinary knowledge exchange and creating a constructive platform for informed dialogue on issues of national importance.

The panel of speakers comprised Dr. Harsha Aturupane, Lead Economist and Programme Leader for Human Development at the World Bank for Sri Lanka and the Maldives; Dr. Achinthya Koswatta, Senior Lecturer in Economics at the Open University of Sri Lanka, and Anushan Kapilan, Lead Economist at Verité Research.

In his welcome address, the President of the OPA emphasised that Sri Lanka was at a critical juncture in its economic recovery journey where sustained reforms, effective implementation, and collective national commitment are essential to achieving long-term stability, resilience and inclusive growth. He noted that the country had experienced one of the most severe economic crises in its history with the economy contracting by 7.8 percent in 2022 and a further 11.5 percent in 2023, resulting in significant economic and social challenges.

Delivering his introductory remarks Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee, underscored the need to move beyond short-term economic stabilisation towards a comprehensive agenda of structural transformation. He observed that the economic crisis had revealed deep-rooted weaknesses within the economy, including persistent fiscal pressures, rising public debt, foreign exchange limitations, and insufficient diversification of the export base. He stressed that addressing these challenges through strategic reforms, institutional strengthening and long-term economic planning would be essential to establishing a more resilient and competitive economy.

While acknowledging recent positive developments, including improved inflation management, tourism recovery and signs of economic stabilisation, Wijeyaratne stressed the need to advance reforms aimed at strengthening fiscal discipline, enhancing productivity, improving competitiveness, developing human capital and reinforcing governance and institutional effectiveness.

He further highlighted the important role of professionals, businesses, academia and other stakeholders in contributing to evidence-based dialogue and supporting Sri Lanka’s journey towards a resilient, inclusive and sustainable economic future.

Delivering the keynote presentation, Dr. Harsha Aturupane provided a comprehensive assessment of Sri Lanka’s economic prospects within the broader context of global economic transformation. He argued that Sri Lanka functioned as a small open economy whose performance is significantly influenced by developments in the global marketplace. External factors could not be controlled, and the country must strengthen its domestic capacity and resilience to respond effectively to international economic shifts, he noted.

Tracing the evolution of global economic systems, Dr. Aturupane highlighted the transition from ideological divisions between state-controlled and market-oriented economies towards increasingly pragmatic approaches focused on growth, competitiveness and development. He noted that Sri Lanka’s own economic journey reflects a similar evolution, with contemporary policy debates now centred on practical solutions for sustainable economic progress.

The presentation also examined the transformative impact of globalisation. Dr. Aturupane observed that global economic integration had enabled several East Asian economies, including South Korea, Singapore, Taiwan and Hong Kong, to achieve remarkable economic advancement through export-led growth strategies. Sri Lanka similarly benefited from this process through the expansion of its apparel industry and increased integration into global value chains.

Turning to Sri Lanka’s recovery programme, Dr. Aturupane emphasised that the ongoing stabilisation process should be viewed as a national programme supported by the International Monetary Fund rather than solely as an IMF initiative. He observed that strong worker remittances, improved tourism earnings, enhanced government revenue mobilisation and prudent import management have contributed significantly to economic stabilisation.

Despite this progress, he cautioned that rebuilding foreign exchange reserves and meeting future debt obligations remain major challenges. He underscored the need to strengthen export performance, attract investment and generate sustainable foreign exchange earnings to ensure long-term economic resilience.

The discussion also focused on monetary stability, inflation management and exchange-rate policy. Dr. Aturupane stressed that maintaining price stability was fundamental to sustainable growth and household welfare, while sound monetary policy remains essential for preserving economic confidence.

Looking beyond stabilisation, he argued that Sri Lanka must transition towards a broader economic transformation agenda. Sustainable growth, he noted, will depend on expanding productive capacity through investment, technological advancement, innovation, skills development and structural reforms.

Among the key constraints identified was the high cost of energy, which continues to affect competitiveness and investment attractiveness. Dr. Aturupane emphasised the importance of improving efficiency and affordability within the energy sector to enhance Sri Lanka’s business environment.

He further highlighted the social dimensions of the crisis, noting the rise in poverty and economic vulnerability among households. Strengthening social protection systems and ensuring inclusive growth, he argued, must remain central components of the national development agenda.

Another critical challenge identified was Sri Lanka’s demographic transition. With an ageing population, outward migration and evolving labour market dynamics, the country is increasingly confronting labour shortages in several sectors. Dr. Aturupane suggested that greater automation, increased labour-force participation and strategic workforce planning would be necessary to address these emerging realities.

Concluding his presentation, he emphasised the need to improve governance, strengthen institutions, enhance competitiveness and create an enabling environment for private sector investment. Sri Lanka’s future success, he noted, will depend on its ability to move decisively beyond crisis management towards a development model founded on resilience, innovation, productivity and inclusive growth.

Dr. Achinthya Koswatta reiterated the importance of policy consistency and predictability in fostering investment and industrial development. She observed that frequent policy changes create uncertainty and discourage long-term investment decisions, whereas stable and coherent policy frameworks build confidence and support sustainable economic transformation.

Meanwhile, Anushan Kapilan highlighted the substantial progress achieved in restoring macroeconomic stability following the recent crisis. He noted significant improvements in fiscal performance, including increased government revenue, reduced reliance on debt financing and a historically low fiscal deficit.

He further observed that public debt levels are declining faster than anticipated, economic growth has exceeded expectations and inflation has been brought under control more rapidly than forecast. Nevertheless, he cautioned that the recovery remains uneven, particularly within the industrial sector and that many households have yet to experience a meaningful improvement in living standards.

The seminar was expertly coordinated by Eng. Chamil Edirimuni, Vice President of the OPA and Chairman of the Seminars, Workshops and Programmes Committee, while the technical moderation and interactive discussion session were facilitated by Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee.

The event was attended by Tisara De Silva, President-Elect of the OPA, Eng. Ravi Rupasinghe, General Secretary, Past Presidents, members of the Executive Council, representatives of the General Forum and professionals representing a wide range of disciplines.

The seminar concluded with a vibrant exchange of ideas and perspectives, reaffirming the importance of evidence-based policy dialogue, institutional collaboration and collective national commitment in advancing Sri Lanka’s economic recovery, resilience and sustainable growth.

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Her roots run deep in Sri Lanka

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Samantha Kay: Now based in the UK Samantha’s biggest passion is helping people, especially women, build confidence and believe in themselves Today, her focus is on radio, podcasting and coaching women Whenever she visits Sri Lanka, she says she loves spending time on the beautiful south coast, especially Hikkaduwa and Mirissa She released a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts

Yes, for UK-based presenter and artiste Samantha Kay, home is where the heart – and the roots – are. And her roots run deep in Sri Lanka.

In an exclusive interview with The Island, Samantha says “I’m proud to be Sri Lankan. My mum is from Kandy and my dad is from Colombo, so Sri Lanka has always held a very special place in my heart.

“Whenever I visit Sri Lanka, I love spending time on the beautiful south coast, especially Hikkaduwa and Mirissa. It’s somewhere I always feel connected to my roots and completely at peace.”

Now living in Bournemouth, on the south coast of England, where, she says, she is lucky to be close to some of the UK’s most beautiful beaches, including the iconic Sandbanks, Samantha has built a career that refuses to fit into one box.

She is a radio presenter, podcast host, singer-songwriter, personal trainer and life coach.

“I genuinely love the variety because every role allows me to connect with people and, hopefully, make a positive difference in someone’s day.”

Of course, music has taken her far.

One of her proudest achievements, she says, was releasing a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts.

She also reached the final stages of The X Factor and performed at Wembley Stadium in front of thousands.

Beyond music, Samantha competed in bikini bodybuilding across the UK, winning several titles. “It taught me discipline, resilience and self-belief,” she recalls.

Today, her focus is on radio, podcasting and coaching women. Her podcast encourages people to live life on their own terms rather than feeling pressured to follow society’s expectations.

Says Samantha: “Whether someone is single, changing careers, travelling solo or simply trying to find their purpose, I want them to know that it’s never too late to create a life that feels authentic. If you’ve ever felt like you don’t fit into the box, maybe you were never meant to.”

Samantha Kay also spent a year in Dubai, performing at five-star hotels, including FIVE, and coaching at the iconic outdoor gym on Palm Jumeirah.

“I taught strength and conditioning classes, and hosted wellness retreats, combining my passion for music, health and inspiring others.”

However, with family matters calling her back to the UK, she made the choice to return. “Family comes first,” she says.

Looking ahead, Samantha plans to grow her radio and podcast work, release more music, and expand her wellness retreats.

“My biggest passion is helping people, especially women, build confidence and believe in themselves,” she says.

“Wherever my career takes me, I hope to continue inspiring others to live with courage, kindness and authenticity, while never forgetting my Sri Lankan roots.”

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