Sri Lanka Tourism Revenues Stable, Minister Clarifies

Sri Lanka’s tourism revenues have not declined, Foreign Minister Vijitha Herath told Parliament on Tuesday, explaining that recent figures reflect a shift to internationally recognized survey methodologies rather than a downturn in earnings.

“The actual dollar amount spent by a foreign tourist in Sri Lanka has been accurately determined, and there has been no major change or disruption in spending patterns,” Herath said. He noted that previous surveys were based on small sample sizes that could artificially inflate income figures, while the new methodology provides a more reliable measure of tourist spending.

MP Ravi Karunanayake raised concerns that credit card payments made by tourists bypass the Central Bank’s LankaPay system and are processed abroad via external payment gateways, resulting in an estimated 2.5% loss in foreign exchange.

Responding, Herath acknowledged the issue, calling it “a big shortcoming” that Sri Lanka had not introduced tax systems for international digital platforms in the past. “Such a methodology had not been prepared even when Mr. Ravi Karunanayake was the Minister of Finance,” he said. He added that the current administration has already introduced tax collection mechanisms targeting international institutions and applications, with provisions included in the latest budget.

Herath emphasized the need for new rules, regulations, and technical measures to ensure all tourism-related revenues are formally captured. “The inclusion of LankaPay in the system is one of the main steps taken for this,” he said, adding that the government is moving quickly to implement both legal and technical safeguards.