By Harischandra Gunaratna

President of The Hotels Association of Sri Lanka (THASL) M. Shanthikumar addressing its members at the organization’s 59th anniversary celebrations recently at the ITC ‘Ratnadipa’ said that the hotel sector investment in Sri Lankan tourism today, amounting to over USD 15 billion, is the highest investment by any sector in the tourism industry, while accounting for 70% of the entire tourism-related workforce.

The highest contribution to government coffers is made by our member hotels. It is by way of TDL payments, taxes, levies, license fees and other payments, he said.

‘Our industry has faced many challenges. We have always shown resilience and come out better. The present time, has been the most challenging after four continuous difficult years since 2019, the THASL president said.

Shanthikumar added: ‘Tourism is a key foreign exchange earner. If the net foreign exchange is assessed, tourism becomes the 2nd highest foreign exchange earner, surpassing even apparel and all other exports. This is due to the consumption of the product happening in the country itself, where the benefit filters down to the grass roots levels. Eg: A tourist arriving in the country not only remits dollars prior to their arrival but spends a large amount of money within the country during their stay. Unfortunately, these figures are not tracked.

‘Dominance of the accommodation providers and their contribution to tourism cannot be underestimated. Hoteliers play a critical part in the overall tourism growth in the country. Not only in Sri Lanka but across the world.

‘THASL is the oldest tourism association in the country and It was set up even prior to the then Ceylon Tourist Board which is now the Sri Lanka Tourism Development Authority.

‘The tourism industry in Sri Lanka should adopt new robust policies. The same old models that are in books may not work. We need the government to look at exceptional financial models, development models for the revival of tourism. A critical role is played by the SME sector in tourism as well as by the informal sector, which we estimate has almost the same number of rooms as the formal sector. These require to be regulated so that they have the proper health and safety guidelines, SLTDA license and fall into the tax net.

‘Our members continue to spend over Rs 3 billion annually on overseas marketing and promotions. This is in addition to TDL. Further, billions of rupees are spent to maintain hotel plants, for continuous training of staff and for day –to- day operations.

‘THASL would like to highlight some of the critical areas of concern which require immediate attention to sustain this industry.

‘Through a Gazette notification issued in 2024, the Excise Department has suddenly increased the liquor license fees and taxes with retrospective effect. This is grossly unethical and unfair.

‘Eg: A small hoteliers who paid Rs. 454,000 last year now has to pay approximately Rs.754, 000. For larger hotels, from Rs 2.5 million to Rs 5 million.

‘The hotel sector contributes 1% of the turnover as TDL to promote and develop tourism. The Treasury does not provide funds for development and promotion. The local government authorities are demanding of hotels to pay a further 1% tax on turnover, while all other industries, such as, banks, hospitals, super markets and apparel organizations only pay Rs. 6000/- per annum. These industries record much higher earnings than hotels. Hotels too must pay the same rate as all other industries. This has been a burning issue for the hotel industry for over 10 years and over 200 legal cases are pending.

‘Why is an industry recording such high forex earnings being penalized and discriminated against?

‘These factors while confusing, are a clear indication that there is no strategic, holistic plan to develop this industry.

‘The hospitality industry is experiencing a severe dearth of skilled and unskilled staff at all levels. With hotels being located across the country, there is great opportunity for trained youth and females to get jobs nearby to their villages or home towns. The female workforce in hospitality in Sri Lanka is still far below regional levels. Hence, there is a need to develop the necessary human capital in large numbers on a priority basis and to reorganize the SLITHM, to churn out the much needed hotel sector staff by training the youth to fit into the hospitality industry.

‘The country has not had a global tourism promotion campaign in place for the past 15 years. We have seen in the past that to plan and roll out a new campaign takes a very long time. Time is of the essence if we are to achieve the proposed arrival targets. Competing destinations, such as the Maldives, Vietnam, Thailand and Maylasia are carrying out very effective campaigns in key source markets.’

Siyapatha Finance PLC, a leading finance company in Sri Lanka and a fully owned subsidiary of Sampath Bank PLC, recently opened its 52nd branch at 310/2, Pallegama Road, Main Street, Deniyaya. With this latest branch, Siyapatha Finance continued its commitment to delivering best-in-class financial solutions to communities across the island. The official opening ceremony was graced by Siyapatha Finance PLC’s Managing Director, Ananda Seneviratne, Chief Operating Officer, Rajeev De Silva, and other senior officials, alongside key representatives from local government , private sector institutions, financial institutions and insurance companies in the area.

The new Deniyaya branch offers a comprehensive suite of financial services, including leasing, fixed deposits, savings accounts, gold financing, business loans, personal loans, fast draft services, factoring, and Siyapatha Finance’s innovative Smart Pay automated bill payment facility. These services are designed to meet the diverse financial needs of Deniyaya’s unique demographic, supporting both individual and business aspirations in the region.

Located in the Matara District of the Southern Province, Deniyaya is an economically robust town with a strong agricultural backbone, primarily based on tea cultivation. With 46% of the local working population engaged in agriculture and 29% employed in the private sector, the town is home to numerous small tea holders and farmers involved in diverse crop cultivation, including vegetables, paddy, pepper, cinnamon, and rubber. The surrounding Sinharaja Rainforest—a UNESCO World Heritage site—also attracts Eco-tourists, providing an additional income stream to the community.

Reaffirming their commitment to supporting the nation’s prestigious educational institutions, Sri Lanka’s leading private sector bank HNB PLC recently announced their partnership with the Old Boys’ Union of St. Joseph’s College (SJC) Colombo -10 and its Ja-ela, Wattala branch to launch an exclusive affinity credit card for its members.

Custom-made for members of Old Boys’ Union of SJC, the customized Affinity card offers a wide range of exclusive benefits and promotional deals across the Bank’s broad portfolio of merchant partners.

Rector of St. Joseph’s College Rev. Fr. Ranjith Andradi, Priyanga Perera -Senior VP OBU SJC, Prithieraj de Silva – Immediate Past Senior VP, OBU SJC, HNB Managing Director / CEO Damith Pallewatte, HNB Chief Operating Officer- Sanjay Wijemanne , were present at the signing of the MoU at HNB head office

“St. Joseph’s College, Colombo stands as a pillar of educational excellence in Sri Lanka, nurturing generations of leaders who have shaped and continue to influence our nation’s trajectory across diverse sectors. Our partnership with the Old Boys’ Association represents more than just financial support; it’s an investment in Sri Lanka’s future. By collaborating on mentorship and skill-building initiatives, we’re actively contributing to the development of the next generation of visionary leaders. This alliance also aligns perfectly with our commitment to fostering sustainable growth and empowering communities, reflecting our broader vision of driving positive change in Sri Lanka’s educational landscape,” said HNB Managing Director / CEO Damith Pallewatte .

The partnership will offer members access to exclusive benefits across HNB’s extensive merchant partner network. Moreover, the bank will waive off the annual fee for the first year and provide members with a complementary supplementary card.

“The partnership between the Old Boys’ Union of St. Joseph’s College, Colombo -10 and HNB marks a significant milestone in our ongoing efforts to support and elevate our alma mater. This collaboration, particularly through the innovative affinity card program, goes beyond financial benefits; it’s a powerful tool for community building and institutional advancement.

By leveraging HNB’s financial expertise and our deep-rooted commitment to the college, we are not only supporting our current endeavors but also lays the groundwork for realizing the full potential of our students and institution. Together, we’re setting a new standard for how educational institutions and corporate entities can work hand in hand to nurture talent and drive societal progress,” said Senior VP Old Boys’ Union SJC, Priyanga Perera.

All members can use this opportunity to give back to school through this initiative, as a percentage will be contributed to the Old Boys’ Union of SJC every time a card is issued and used. Customers can also make use of a 12-month easy payment plans with 0% interest rates on all school fees payments to SJC, in addition to complementary overseas travel and health insurance plans.