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Ravi: foreign exchange inflow does not reflect increased tourist arrivals

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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



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Burning of low-grade coal at N’cholai plant increases pollution: Parliament

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Parliament yesterday (30) said the use of inferior quality coal at Norochcholai Lak Vijaya coal-fired power plant caused environmental pollution.

The Opposition has accused the Energy Ministry of importing low quality coal and the CEB has directly blamed the developing crisis in coal imported from South Africa.

The Parliament is scheduled to debate a no-confidence motion moved by SJB-led Opposition against Energy Minister Kumara Jayakody on 10 April.

The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lak Vijaya Power Plant.

These instructions were given at a recent meeting of the Committee held in Parliament, under the Chairmanship of Member of Parliament Hector Appuhamy.

It was revealed during the meeting that due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation had increased significantly. Officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District, to take the necessary measures.

It was also proposed that the possibility of reusing the coal ash for production purposes be studied, and that any revenue generated from such products be utilised for welfare projects benefiting the communities affected by the power plant.

In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also instructed to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.

Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant had increased, the filtration system in use at the plant was sufficient to absorb it. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed at the committee meeting.

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Tariff shock from 01 April as power costs climb across the board

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By Ifham Nizam

Electricity consumers will face a fresh financial jolt from 01 April, with the Public Utilities Commission of Sri Lanka (PUCSL) approving a countrywide tariff increase that will push up monthly bills across all consumption categories, with the heaviest burden falling on high-end users.

The decision follows a proposal by the Ceylon Electricity Board (CEB), which sought a 13.56 percent upward revision for the second quarter of the year, citing mounting operational costs and financial pressures within the power sector.

Under the new tariff structure, even the lowest-income households will not be spared, though the increases at the bottom tiers remain relatively modest. Consumers using between 0–30 units will see a 4.3 percent rise, adding approximately Rs. 15 to their monthly bill. Those in the 31–60 unit bracket will experience a 6.9 percent increase, translating to an additional Rs. 45.

For middle-tier users, the impact becomes more pronounced. Households consuming 61–90 units will pay around Rs. 120 more per month, following a 6.9 percent hike, while those in the 91–120 unit range will face a sharper increase of 7.1 percent, pushing their monthly costs up by about Rs. 420.

However, the steepest escalation is reserved for heavy electricity users. Consumers exceeding 180 units will be hit with a staggering 25 percent increase — the highest adjustment under the latest revision — raising serious concerns over affordability, particularly for urban households and small businesses already grappling with rising living costs.

Energy sector analysts warn that the latest revision signals deeper structural issues within the power sector, including reliance on costly thermal generation, currency pressures, and inefficiencies in energy procurement.

“The burden is gradually shifting toward consumers as the sector struggles to maintain financial stability,” a senior power sector analyst said, noting that repeated tariff adjustments could further strain public tolerance.

The PUCSL maintained that the revision was necessary to ensure the sustainability of electricity supply and to prevent a recurrence of crises that previously led to widespread outages and load shedding. The regulator has also indicated that cost-reflective pricing remains a key policy direction, particularly as global energy markets remain volatile.

The move comes at a time when many households are still adjusting to broader economic pressures, including high food prices and transport costs, raising fears that the tariff hike could have a cascading effect on the cost of living.

Small and medium enterprises, already operating on thin margins, are also expected to feel the pinch, with higher electricity costs likely to feed into production expenses and retail prices.

Despite the increases, questions remain over whether the tariff revision alone will be sufficient to stabilise the financially strained power sector, or if further adjustments — or reforms — may be inevitable in the months ahead.

With electricity demand steadily rising and generation costs remaining unpredictable, consumers now brace for yet another phase of higher utility bills, underscoring the fragile balance between energy security and economic resilience.

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CDL under new management completes major Norwegian ship order

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The Colombo Dockyard (CDL) under its new management has completed a major contract undertaken in March 2020 to build ten ships for Norwegian Misje Eco Bulk AS.

The company said that in spite of unprecedented global disruptions, a pandemic, an economic bankruptcy, regional wars, supply chain disruptions, logistical uncertainties, and untold hardships, they had been able somehow to meet contractual obligations.

The tenth ship was delivered to Misje Eco Bulk AS at the Colombo harbour recently.

Indian shipbuilding giant Mazagon Dock Shipbuilders Ltd. (MDL), affiliated to India’s Ministry of Defence (MOD), acquired controlling stake in CDL from Japanese shipbuilder Onomichi in mid last year MDL paid USD 52.96 mn for the stake.

Dileesh Rosemary De Silva breaking a bottle of champagne in celebration. She is flanked by Roald Misje CEO Misje EcoBulk AS and Thusitha Herath Site Team Manager of Misje EcoBulk AS

The owners named the vessel ‘Misje Kandy’ as a tribute to CDL. Ceremonial breaking of the milk pot in accordance with the Sri Lankan traditions was done by the Colombo Dockyard’s Project Manager of the series of 10 vessels S.M.S.B. Serasinghe. In accordance with the western traditions the ceremonial breaking of the Champagne bottle was done by the God Mother of the vessel Mrs. Dileesh Rosemary de Silva.

The 89.95m DNV-classed Eco Bulker was conceptualised by Wartsila Ship Design Norway, with detailed design work carried out by CDPLC’s skilled in-house design team. In line with the latest trends in sustainable shipping. The vessel is equipped with an advanced Energy Storage Battery System (ESS) for Electric Hybrid Propulsion, complementing the conventional diesel propulsion system to enhance operational performance and reduce environmental impact.

Indian High Commissioner in Colombo Santosh Jha attended the ship launch with the government represented by deputy ministers Nishantha Jayaweera and Janitha Kodithuwakku.

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