Govt. pushes ahead with new Tourism Act despite industry concerns

• Second Presidential Task Force meeting set for mid-October ​Senior government official confirms draft legislation is advancing to parliamentary stage, following initial Cabinet approval
• Proposed law would replace nearly two-decade-old Tourism Act No. 38 of 2005
• Industry reactions have been mixed. Some private sector players are wary that new framework could entangle them in lengthy government procedures

By Nishel Fernando

Sri Lanka’s government is moving forward with plans for a new Tourism Act to overhaul the sector’s administrative framework, despite concerns from some private sector stakeholders over potential bureaucratic hurdles.

A senior government official, speaking to Mirror Business on condition of anonymity, confirmed that the draft legislation is advancing to the parliamentary stage, following the initial Cabinet approval.

At the same time, a high-level Presidential Task Force, appointed to fast-track the five-year Sri Lanka Tourism Development Programme, is scheduled to hold its second meeting in mid-October, to continue efforts to streamline the industry.

The proposed law would replace the nearly two-decade-old Tourism Act No. 38 of 2005. It aims to consolidate the Sri Lanka Tourism Development Authority, Sri Lanka Tourism Promotion Bureau and Sri Lanka Convention Bureau into a single entity, under a new apex body, the National Tourism Commission.

“The Cabinet approval to issue a new act has been received. Now it has to go to the legislation part... the process has been started,” the official said.

The industry reactions, however, have been mixed. Some private sector players are wary that the new framework could entangle them in lengthy government procedures.

“They think when the government institutions have been involved, it takes a long time. So, we are not happy enough, especially for the procurement process,” the official said.

A key point of contention is the handling of procurement for promotional activities.

“The private sector does not want to go through the government agencies. In this case, the Tourism Ministry. They want that to be given to the Sri Lanka Tourism Authority,” the official added, noting that this desire to minimise red tape conflicts with the existing regulations.

The newly formed Presidential Task Force, appointed in August by President Anura Kumara Disanayake, is tasked with addressing such inter-agency delays. Chaired by the Foreign Affairs, Foreign Employment and Tourism Minister, the body functions as the central coordinating mechanism for tourism development across ministerial jurisdictions.

The task force’s inaugural meeting this week focused on fostering collaboration between the government bodies.

“Bringing out all those institutions together and seeing how best forward we can talk,” the official described, characterising the session as a crucial first step.

An example cited by the official highlights the coordination challenges: “We are advertising that there are 3,000 acres of land available for investment. But those lands ... are not directly under the Tourism Ministry. Some are under the Cultural Triangle, some under Forestry and other ministries. There should be collaboration.”

The first meeting served mainly as an exchange of ideas between the private sector and government, while the second session in mid-October is expected to focus more on policy and implementation. With its authority to demand cooperation from all levels of government and its mandate to report directly to the president, the task force represents a significant top-down effort to fast-track the long-delayed initiatives and stimulate growth in Sri Lanka’s tourism sector.