News
Ravi: foreign exchange inflow does not reflect increased tourist arrivals
NDF MP Ravi Karunanayake, on Tuesday, raised concerns over, what he described as, a widening disconnect between record tourist arrivals and a weak foreign exchange inflow, warning that headline arrival figures were masking deep structural failures in Sri Lanka’s tourism sector.
Raising the issue under Standing Order 27(2) (20), Karunanayake noted that Sri Lanka recorded more than 2.36 million tourist arrivals in 2025, yet total tourism earnings had increased only marginally to about USD 3.22 billion. He said average spending per tourist had declined by nearly 12 percent year-on-year, while tourism-related foreign exchange inflows, reflected in the Central Bank’s reserves, had not grown in proportion to arrivals.
“This raises serious concerns about revenue quality, offshore settlements, informality and weak enforcement,” the MP said, pointing out that an estimated 40,000 hotel and accommodation entities were operating without registration.
Karunanayake sought clarification from the government on the structural reasons behind declining per capita tourism earnings, including changes in source markets, length of stay and pricing practices. He also asked for details of the actual volume of tourism-related foreign exchange converted through licensed commercial banks in 2025 and reflected in Central Bank reserves, and how this compared with earnings figures reported by the Sri Lanka Tourism Development Authority.
MP Karunanayake further asked whether the government had assessed foreign exchange leakages arising from offshore settlement by online booking platforms and the extent of tourism activity conducted by unregistered accommodation providers and informal operators outside the banking system. “Does the Government accept that a material share of tourism-generated foreign exchange is bypassing the domestic financial system and, therefore, not strengthening official reserves?” he asked.
The NDF MP also criticised weak enforcement of mandatory registration, banking channel settlements and foreign exchange repatriation requirements, despite existing legal powers. He urged the Government to present a tourism policy explicitly linked to earnings, foreign exchange inflows and reserve accumulation, rather than relying on headline arrival numbers.
Karunanayake additionally warned that overseas credit cards were widely used for tourism payments in Sri Lanka, with invoicing and settlement taking place outside the country, thereby avoiding domestic taxation. He said international booking platforms similarly processed payments offshore, depriving Sri Lanka of full taxable revenue, and asked what corrective action was being taken to address the issue.
The government requested time to respond to the queries raised by the Opposition MP.
By Saman Indrajith
Latest News
Landslide Early Warnings issued to the Districts of Kandy and Nuwara Eliya extended
The landslide early warnings issued to the Districts of Kandy and Nuwara Eliya by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 0600 hrs on the 14th of February 2026.
Accordingly,
The Level II [AMBER] landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Walapane and Nildandahinna in the Nuwara Eliya district and
the Level I [YELLOW] landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Pathahewaheta in the Kandy district have been extended till 0600AM on Saturday [14]
News
Royal Navy of Oman Vessel “SADH” departs island
The Royal Navy of Oman Vessel “SADH” which arrived in Sri Lanka for replenishment purpose, departed the island on 12 Feb 26.
In accordance with naval tradition, the Sri Lanka Navy extended a customary farewell to the departing ship.
Latest News
“We will not make decisions for rural level schools while sitting in Colombo” – PM
The Minister of Education, Higher Education and Vocational Education Prime Minister Dr. Harini Amarasuriya stated that aligning with the development activities carried out under the new education reforms, decisions at the rural level will not be taken from Colombo and plans should be sent based on the requirements of the rural level through the District Coordination Committees by structural committees. She further noted that all officials, from the Ministry of Education down to the school level, must commit to working efficiently and with a human-centered approach.
The Prime Minister made these remarks while addressing a discussion held with education authorities of the Hambantota District on Thursday [February 12] at the auditorium of the Hambantota District Secretariat regarding the new education reforms and prevailing issues in the education sector.
During the meeting, the Prime Minister provided an opportunity for education authorities including chief prelates of pirivenas, zonal education directors, teacher advisors, and principals to present the challenges they face and officials raised concerns including salary disparities among principals, developing school infrastructure, issues arising from the division between national and provincial schools, and uplifting pirivena education.
Further elaborating, Prime Minister stated:
“The new education reforms were initiated from 2025 through dialogue, consultations, and the collection of necessary data. As officials, you have extended your support to us during this process. We have embarked on a difficult and long journey, and we look forward to your continued cooperation.
We initiated these reforms in response to a strong social demand. Many have attempted such reforms at different times. Within our political vision, we understood clearly that if this country is to be rebuilt, an educational transformation is essential. The human resource is the most valuable resource of this country and it should be nurtured properly.
Solutions to many of the crises our country faces lie within the education system. Addressing the issues in economic challenges, social issues, drug abuse, violence, the breakdown of political culture, corruption, waste, and even the deterioration of human relationships all lie within the education.
In order to achieve the transformation we envision as a government, that an education transformation is necessary.
This education system should focus on reducing the pressures within the system, minimize school dropouts, increase employability, and instill confidence in children about their future.
There are disparities within the school system, between rural and urban schools, national and provincial schools, and difficult schools. This should not happen. All children must have equal opportunities.
Decisions regarding the establishment of schools or expansion of classes should not be political decisions. They must be decisions taken through Structural Committees. Those representatives understand their divisions, village economies, and population dynamics. Based on your decisions and assessments of needs, prepare the plans, discuss them with the District Coordination Committees, and submit them to us. We will then take steps to provide the necessary allocations and other support. We will not make decisions for the rural level while sitting in Colombo.
We are taking steps to minimize salary disparities. A Cabinet paper regarding the salary anomalies of principals has already been prepared for submission. Steps are also being taken to introduce new reforms in pirivena education through the Pirivena Committee of the Ministry of Education. We require the support of the chief prelates in this regard.
A significant number of teachers turn to human rights due to delays caused by inefficiency. Therefore, all officials from the Ministry of Education down to the schools must commit to working efficiently and in a humane manner”
The discussion was attended by Chief prelates of pirivenas, deputy ministers, Members of Parliament, zonal directors, principals, and other education sector officials.


[Prime Minister’s Media Division]
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