New tourism Act comes under industry fire

THASL President Asoka Hettigoda (left) and CEO Priantha Fernando – Pic by Ruwan Walpola

 Hotel industry warns against new tourism Act, says policy delays hurting sector growth

 Calls on Govt. to amend existing legislation where necessary with stakeholder consultation 

 Asserts proposed National Tourism Commission and Tourism Policy Formulation Council will only recreate bureaucracy, red tape that existing Act was designed to eliminate 

 Says real issue lies in failure of authorities to fully utilise provisions under existing Act

By Charumini de Silva

Warns relying on civil service pay scales prevent tourism institutions from attracting skilled professionals needed to compete with regional destinations

Sri Lanka’s hotel industry has cautioned the Government against introducing a new tourism law, arguing that policy delays, bureaucratic inefficiencies, and weak implementation of the existing legal framework are already undermining the sector’s growth momentum.

Addressing a media briefing, The Hotels Association of Sri Lanka (THASL) President Asoka Hettigoda and CEO Priantha Fernando said introducing an entirely new tourism Act could take up to two years due to the lengthy drafting, Cabinet, and parliamentary approval process, leaving the industry in limbo at a time when urgent action is needed.

“What we are proposing the Government is to amend the existing legislation where necessary, but in consultation with stakeholders, and immediately move forward with reforms that can strengthen governance, improve marketing execution, and accelerate tourism recovery,” Fernando said.

He opined that although the Government’s policy framework identifies tourism as a priority industry, the sector continues to face delays in critical decisions and has yet to receive the policy support promised by authorities.

Fernando noted that several proposals submitted by the industry remain unresolved, including the long-awaited global tourism promotional campaign, which was originally expected to be launched last year.

He said despite repeated discussions with policymakers, most of the sector’s pressing concerns remain pending, creating uncertainty for operators already dealing with global travel disruptions and rising operating costs.

Fernando also raised concerns over proposals within the Government’s tourism policy framework to establish new institutions such as a National Tourism Commission and a Tourism Policy Formulation Council.

“These additional governance structures would only recreate the bureaucracy and red tape that the existing tourism legislation was originally designed to eliminate,” he said.

He argued that the current framework under the Sri Lanka Tourism Development Authority (SLTDA) already provides sufficient legal authority for tourism institutions to make independent commercial decisions and implement industry strategies without excessive Government intervention.

“The real issue lies not in the law itself, but in the failure of authorities over the past 15 years to fully utilise the powers already granted under the existing Act,” he said.

He also criticised political appointments to key leadership roles within tourism institutions, noting positions such as Director General and Managing Director, particularly in destination marketing should be held by professionals with industry expertise rather than political nominees.

According to Fernando, the existing Act already allows Boards to determine competitive remuneration packages to attract top talent in areas such as destination marketing, research, and product development, but these provisions have largely been ignored in favour of standard Government salary structures.

He warned that relying on civil service pay scales has prevented tourism institutions from attracting the skilled professionals needed to compete with regional destinations.

Fernando also dismissed proposals to establish additional research, investment, and international relations subcommittees, pointing out such functions are already covered by existing institutional structures and private sector representation on tourism Boards.