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Govt. cracks down on illegal foreign-run tourism businesses

20 Feb 2026 - {{hitsCtrl.values.hits}}      

Sri Lanka’s tourism authorities, in collaboration with law enforcement agencies, have intensified their crackdown on illegal tourism operations run by foreigners, resulting in the apprehension of 75 individuals and the deportation of 15 foreign nationals last year. 

Officials indicated that the nationalities of the offenders are largely proportional to Sri Lanka’s top tourism source markets.

The joint operations are being spearheaded by the Sri Lanka Tourism Development Authority alongside the Department of Immigration and Emigration and the Sri Lanka Police. 

The initiative aims to strictly enforce the law against foreign tourists and expats engaging in unapproved business activities within the hospitality and travel sector, a growing issue that has raised significant concerns among registered local operators. Officials noted that legal action is ongoing across the country to track down and penalize individuals violating their visa conditions by participating in illegal commerce.

In addition to targeting foreign nationals, authorities are also taking legal action against locals who facilitate, front, or collaborate in these unauthorized ventures. To strengthen these ground-level enforcement efforts, the police department is currently restructuring and expanding its specialized divisions. Following ministerial directives, plans are underway to establish over 80 new or restructured tourism police units across all designated tourism zones in the country to maintain strict vigilance.

The ongoing crackdown is a key component of a broader government strategy to absorb the country’s vast informal tourism industry into the formal economy. To provide more regulatory authority to these enforcement activities, a new Tourism Act is currently being drafted. The updated legislation is expected to close existing regulatory loopholes, streamline the registration process for informal accommodation units and service providers, and establish stricter legal frameworks to penalise those actively bypassing the system. (NF)