Tourism industry warns against repealing of Act

• Calls it a threat to jobs and FX earnings
• Says repealing the Act at this critical growth stage would undermine a proven and globally competitive industry
• Cautions a repeal would invite unregulated and substandard operations that erode destination credibility

Sri Lanka’s tourism industry has issued a strong warning against any move to repeal the Tourism Act, calling it a direct threat to the country’s most promising foreign exchange earner and a sector central to jobs, investment and regional livelihoods.

“The Tourism Act must be retained as the cornerstone of Sri Lanka’s tourism governance,” industry stakeholders said in a joint statement, rejecting outright proposals for a full repeal and urging the government to amend and modernise the law instead.

Tourism, they said, is a strategic national industry with the potential to become Sri Lanka’s No. 1 source of foreign exchange, surpassing all other sectors. 

“Repealing the Act at this critical growth stage would undermine a proven and globally competitive industry,” the statement said.

Stakeholders stressed that tourism is more than 95 percent driven by private-sector investment, ranging from large hotels to SMEs, travel agents, transport operators and community-based enterprises. 

“Investors require legal certainty and predictable regulation. Only a retained Tourism Act can provide that stability,” they said.

They went on to warn that abrupt legal changes would damage long-term capital formation in a sector where investments are capital-intensive and span decades.

The industry also highlighted tourism’s employment footprint, noting that the sector directly and indirectly supports millions of livelihoods across hotels, restaurants, transport, agriculture, fisheries, crafts, wellness and informal services. 

“Any repeal risks widespread economic and social disruption.”

Tourism’s role in inclusive growth was another key concern. Industry representatives pointed to deep community and rural participation through homestays, village tourism, guides and artisans. 

“The Act provides the framework to protect and formalise this inclusion,” they said, cautioning that deregulation would disproportionately hurt small operators.

The statement further warned that weakening the legal framework would damage Sri Lanka’s tourism brand. 

“The Tourism Act safeguards minimum standards, safety and service quality. Repeal would invite unregulated and substandard operations that erode destination credibility,” stakeholders said.

Calling for regulation rather than “deregulation chaos,” the industry argued that orderly development, environmental protection, zoning and carrying-capacity management cannot be left to market forces alone.
“If certain provisions are outdated or impractical, they should be selectively amended and strengthened, not repealed in entirety,” the statement said.

Any move driven by short-term administrative or political considerations, stakeholders warned, would be “contrary to national economic interest” and detrimental to the long-term growth of Sri Lanka’s tourism industry.