Fresh Tourism Entrepreneurship Fund to boost visitor experiences

Thursday, 3 September 2026 00:30 - - {{hitsCtrl.values.hits}}

Fund to be managed by private fund manager under Tourism Ministry, subject to due diligence
Aims to crowd in private capital for SMEs, events and new visitor experiences

The World Bank is backing the creation of a Tourism Entrepreneurship Fund to channel investment into the businesses, events and creative experiences needed to turn Colombo into a higher-value tourism destination and persuade visitors to stay longer and spend more.

The proposed fund will target the “software” of Colombo’s tourism ecosystem, complementing investments in physical infrastructure by supporting micro, small and medium-sized enterprises (MSMEs), entrepreneurs, events and experiences that can add commercial value to the city’s tourism proposition.

“The fund would focus on enterprises capable of making Colombo more attractive to higher-value tourists,” World Bank Lead Private Sector Specialist – South Asia Region, Finance, Competitiveness and Innovation Global Practice Natasha Kapil said on Monday.

The key objective is to build a richer visitor economy around Colombo’s existing attractions, giving tourists more reasons to extend their stays and increasing the amount they spend within the local economy.

The World Bank intends for the fund to be managed by a professional private fund manager under the Tourism Ministry, with investments subjected to commercial and technical due diligence.

The fund could also support artisans, creative enterprises, nature guides, equipment operators and other MSMEs that form the ecosystem around tourism.

Kapil stressed that the intention is to create a sustainable investment mechanism capable of generating returns, rather than simply distributing public funds.

“We would like to make sure there are investments that grow into MSMEs,” she said.

The World Bank also sees the fund as a potential catalyst for substantially larger pools of private capital.

Kapil said financing could potentially be leveraged alongside private-equity investors and institutions such as the International Finance Corporation (IFC), allowing the initial public investment to crowd in additional private financing.