By: Staff Writer
May 17, Colombo (LNW): Sri Lanka’s hotel and tourism sector is warning that the Government’s move to introduce a new tourism law without meaningful consultation could destabilise an already fragile recovery and deepen long-standing structural weaknesses in the industry.
Industry leaders argue that the proposed overhaul risks repeating past policy failures while ignoring urgent operational reforms needed to restore competitiveness. The concerns were raised by senior representatives of the Hotels Association of Sri Lanka, who say the process has been shaped more by administrative momentum than by evidence-based stakeholder engagement.
At the centre of the dispute is the Government’s plan to replace or significantly restructure existing tourism legislation through a new Act. Industry officials warn that such a move could take up to two years due to drafting requirements, Cabinet approvals, and parliamentary debate. They argue that this timeline would effectively stall decision-making in a sector that is highly sensitive to global travel trends, currency pressures, and rising operating costs. In contrast, they have urged authorities to prioritise targeted amendments to existing laws rather than embark on a full legislative reset that risks prolonged uncertainty.
According to sector representatives, repeated delays in implementing already announced tourism initiatives have weakened confidence among investors and operators. They point to unresolved proposals, including a long-promised global marketing campaign, which has yet to materialise despite earlier commitments.
Industry leaders say this gap between policy announcements and execution has created a credibility deficit, particularly at a time when regional competitors are aggressively expanding their tourism branding and infrastructure.
Stakeholders also argue that Sri Lanka’s existing institutional framework, particularly under the Sri Lanka Tourism Development Authority, already provides sufficient legal authority to drive marketing, product development, and investment promotion.
They contend that the core issue is not the absence of legislation, but the underutilisation of existing powers and the slow pace of administrative execution. From their perspective, introducing a new Act without fixing implementation gaps risks layering additional bureaucracy onto an already strained system.
A key concern raised is that the reform process appears to be proceeding without structured consultation with industry participants, including hotel operators, tour companies, and destination marketers.
Critics argue that excluding stakeholders from early-stage drafting increases the likelihood of misaligned policies that fail to address on-the-ground realities. They warn that policy design without operational insight could further weaken Sri Lanka’s ability to respond to shifting global tourism demand.
Industry voices also caution that the broader economy remains vulnerable, with tourism still one of the few sectors capable of generating rapid foreign exchange inflows.
Any legislative delay or administrative bottleneck, they argue, would not only affect hospitality businesses but also ripple through transport, agriculture, and informal employment networks tied to tourism activity. The call from the sector is increasingly focused on immediate reform within existing structures rather than a prolonged legislative reset that could freeze momentum at a critical economic juncture.