Harsha flags ‘tourism paradox’ as arrivals rise but revenue weakens

Wednesday, 25 February 2026 00:26 -     - {{hitsCtrl.values.hits}}


Opposition MP Dr. Harsha de Silva has warned of a growing “tourism paradox,” claiming that while visitor arrivals are increasing, sector earnings are failing to keep pace due to regulatory loopholes and revenue leakages.

In a post on X, the Samagi Jana Balawegaya (SJB) Parliamentarian noted that foreign nationals are allegedly operating unlicenced cafés, bars, surf camps and tour services on tourist visas, allowing income to be collected through overseas payment platforms.

“Arrivals surging, revenue falling,” he wrote, arguing that unregulated activity enables money to flow out of Sri Lanka rather than circulate within the local economy.

He also raised concerns about overtourism, particularly in ecologically sensitive and heritage sites.

Dr. de Silva cited overcrowding at Yala, saying excessive vehicle traffic and visitor volumes are straining wildlife habitats and park management capacity.

He also pointed to mounting pressure on Sigiriya, warning that unmanaged footfall risks damaging the UNESCO-listed site.

In addition, he highlighted pollution and congestion along popular beach destinations, claiming that an influx of low-spending budget travellers is crowding hotspots while pushing up prices for locals.

The MP said Sri Lanka should welcome innovation and foreign investment in tourism, but strictly within the legal framework. “Same rules: licences, local jobs, taxes,” he wrote, calling for equal enforcement across all operators.

Dr. de Silva urged a strategic shift toward sustainable tourism focused on “quality over quantity,” arguing that protecting natural and cultural assets is critical to long-term revenue growth.

He called on the Government to urgently strengthen monitoring, licencing and enforcement mechanisms to prevent further revenue leakage and environmental degradation.

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