By: Staff Writer
January 31, Colombo (LNW): The government has initiated a VAT refund scheme for tourism with the aim of positioning Sri Lanka as a leading retail tourism hub in the region.
This significant policy reform will be enhancing the iaslnd nation’s appeal to high-spending international travellers while boosting economic growth.
The Sri Lanka Retailers’ Association (SLRA) applauded the recent announcement by President Anura Kumara Dissanayake approving the VAT refund program for tourism.
Retail tourism contributes approximately 6% of the global travel and tourism sector’s direct GDP and is pivotal in enhancing tourist experiences and increasing foreign exchange earnings.
According to the World Travel and Tourism Council, Sri Lanka experienced a 12.8% growth in retail tourism GDP contribution between 2010 and 2019, ranking it among the fastest-growing retail tourism destinations globally.
By leveraging its strategic location, cultural diversity, and unique shopping experiences, Sri Lanka has immense potential to become a preferred shopping destination in the Asia-Pacific region.
Introducing a VAT refund program aligns Sri Lanka with leading global shopping destinations such as Singapore, Thailand, and Dubai, where tax-free shopping incentives have proven effective in attracting high-value tourists.
This initiative is expected to significantly contribute to the country’s tourism revenue target of US $ 8 billion by 2030.
With retail tourism projected to become a billion-dollar industry in Sri Lanka, this policy change will boost key sectors, including luxury goods, branded fashion, electronics, and gem and jewellery.
SLRA President Charitha Subasinghe said: “The approval of the VAT refund program marks a pivotal moment for Sri Lanka’s retail and tourism industries.
By removing tax barriers and making shopping more attractive to international visitors, we are laying the foundation for a thriving retail tourism sector that benefits consumers and businesses.
The SLRA is committed to working closely with the Government and industry stakeholders to ensure the successful implementation of this initiative.”
With the right policies, Sri Lanka can capitalise on the growing global retail tourism trend, driving increased foreign spending, enhancing tourist satisfaction, and creating new opportunities for local businesses. The SLRA remains dedicated to advocating for initiatives to strengthen Sri Lanka’s global retail positioning and ensure sustainable economic growth.
The SLRA was founded in 2015 and incorporated as a Company Limited by Guarantee in June 2016.
It aims to harness the resources of the organised retail industry onto a common platform to promote growth, innovation, and global outreach.
The Association currently represents nine sectors in the retail industry: FMCG, Clothing, Fashion and Jewellery, Shelter and Housing, Household and Consumer Durables, Footwear and Accessories, E-Commerce, Mobility, Entertainment, and Healthcare and Wellness.Through advocacy, collaboration, and strategic initiatives, the SLRA works to enhance the retail landscape in Sri Lanka and contribute to the nation’s economic development.
