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.

By: Staff Writer

May 17, Colombo (LNW): A wave of cyber-linked financial frauds targeting Sri Lanka’s state institutions is threatening to undermine public confidence in the government’s financial management, as investigators probe a series of overseas payment scandals involving SriLankan Airlines, the Treasury, and the Postal Department amid mounting economic pressure on the country.

The latest controversy centers on two separate frauds uncovered within SriLankan Airlines’ overseas operations in Dubai and Chennai, exposing alarming gaps in cybersecurity and financial oversight. Authorities say the airline lost nearly Rs.160 million through a combination of email hacking, forged documentation, and suspected insider manipulation.

According to investigators, cybercriminals infiltrated the email account of a Dubai-based airline agent and used the compromised communication channel to instruct SriLankan Airlines officials to transfer US$265,000 into a fraudulent account. Because the request appeared to originate from an authentic official source, the payment was processed without detection until the funds had disappeared.

The second fraud allegedly unfolded at the airline’s Chennai office, where three Indian nationals employed at the station are accused of fabricating documents to illegally withdraw approximately Rs.80 million. Indian police have reportedly initiated separate investigations into the operation as Sri Lankan authorities attempt to determine whether wider criminal networks were involved.

The incidents have intensified scrutiny over Sri Lanka’s vulnerability to cyber-enabled financial crimes, particularly within institutions responsible for handling foreign transactions and debt settlements. In recent months, authorities also reported a US$2.5 million cyber fraud linked to Treasury-related foreign debt payments, alongside another US$625,000 payment fraud involving the Postal Department.

Financial analysts warn that the repeated attacks indicate systemic institutional weaknesses rather than isolated incidents. Sri Lanka’s prolonged economic crisis, combined with strained administrative resources and aging digital infrastructure, may have created ideal conditions for sophisticated cybercriminals to penetrate government-linked financial systems.

Deputy Finance Minister Anil Jayantha stated that investigations into both SriLankan Airlines cases are ongoing and pledged that all irregularities would be fully examined. He confirmed that one case appears directly connected to the compromised Dubai agent account, while the Chennai fraud allegedly involved employees manipulating internal systems through forged paperwork.

The growing pattern of financial irregularities extends beyond overseas transactions. Recent concerns over alleged double payments involving the Road Development Authority and discrepancies tied to welfare relief disbursements have further damaged public trust in state financial controls.

Critics argue that successive scandals reveal deeper governance failures at a time when Sri Lanka is attempting to restore international credibility after its unprecedented economic collapse. With public finances under severe strain and foreign debt obligations continuing to pressure the Treasury, the emergence of repeated cyber heists and payment irregularities risks weakening investor confidence and public faith in state institutions.

Unless urgent reforms are implemented to strengthen cybersecurity systems, tighten payment verification mechanisms, and improve accountability across government agencies, experts warn that Sri Lanka could face escalating financial exposure from increasingly sophisticated cybercriminal operations targeting vulnerable public institutions.

By: Staff Writer

May 17, Colombo (LNW): Sri Lanka’s transition toward environmentally sustainable transport received a major boost with a new initiative led by John Keells CG Auto in collaboration with Bank of Ceylon and Sri Lanka Insurance Corporation General Ltd. aimed at expanding electric vehicle ownership among Government employees.

The programme focuses on improving access to New Energy Vehicles (NEVs) by combining automotive expertise with financial and insurance support, creating what industry observers describe as one of the country’s most comprehensive EV ownership frameworks to date. Running until July 2026, the campaign seeks to encourage public sector workers to embrace cleaner transportation alternatives at a time when Sri Lanka continues to struggle with fuel import costs and energy vulnerabilities.

As the authorised distributor for BYD and DENZA vehicles in Sri Lanka, JKCG Auto is offering a series of incentives designed to make EV ownership more practical and affordable. These include introductory pricing arrangements, assistance with home charging installations, and expanded aftersales support services.

However, analysts say the real significance of the initiative lies in the involvement of two major state-owned institutions. Bank of Ceylon’s participation through preferential leasing facilities gives the programme financial credibility while helping overcome one of the primary barriers facing EV adoption  high upfront costs. At the same time, Sri Lanka Insurance Corporation’s tailored insurance solutions are expected to address concerns surrounding maintenance, risk coverage, and long-term ownership confidence.

The initiative also reflects an emerging shift in how public institutions are approaching climate-conscious economic development. Rather than relying solely on policy rhetoric, the partnership introduces a market-based mechanism capable of encouraging behavioural change through practical incentives.

JKCG Auto CEO Charith Panditharatne described the programme as part of a broader effort to ensure that electric mobility becomes both accessible and functional for ordinary consumers. He argued that strengthening charging infrastructure and service accessibility across the island remains essential for building long-term trust in NEVs.

Importantly, the campaign is targeting Sri Lanka’s largest workforce segment Government employees  giving the initiative potential scale and national visibility. If adoption rates improve within the public sector, industry experts believe the move could influence wider consumer confidence and accelerate acceptance of electric vehicles among the general population.

The initiative arrives as Sri Lanka continues exploring ways to reduce fuel import expenditure while improving environmental sustainability. With transportation remaining heavily dependent on fossil fuels, policymakers and industry leaders increasingly view electric mobility as both an economic and environmental necessity.

Critics, however, note that long-term success will depend on the expansion of charging infrastructure, electricity reliability, and consistent Government policy support. Without broader ecosystem development, EV growth could remain concentrated among higher-income urban consumers despite financing support.

Nevertheless, the collaboration between JKCG Auto, Bank of Ceylon, and Sri Lanka Insurance represents a notable attempt to create an integrated green mobility ecosystem. By combining vehicle access, financing, insurance, and infrastructure support into a single initiative, the partnership could become an important benchmark for future sustainable transport programmes in Sri Lanka.