📈 TOURISM ALERT: TANGALLE RESTAURANT DISCRIMINATION

Industry experts warn that discriminatory "foreigners only" practices could jeopardize Sri Lanka’s ambitious target of attracting 3 million tourists in 2026. A viral incident in Tangalle has sparked national outcry, highlighting risks to the country's brand as a welcoming destination. • Overall Impact: Reports of a beachside restaurant, ‘Tasty Tides’ (recently renamed to ‘Momos of Tangalle’), refusing service to locals have gone viral. Experts suggest such behavior threatens the hospitality sector's reputation, especially during the current recovery phase following regional floods. • Sector Breakdown: • Tourism & Hospitality: Critics call for an "educational campaign" and strict enforcement by the SLTDA (Sri Lanka Tourism Development Authority) to stop segregation. • SME & Local Business: The restaurant owner faced immediate digital backlash, leading to a name change within 24 hours. • Key Highlights: • Employment & Industry Stability: Discrimination against domestic travelers is seen as particularly damaging, as locals sustained the tourism industry during past crises (COVID-19 and the 2022 economic collapse). • Regulatory Stance: Authorities are under pressure to "come down hard" on offenders. Under existing Consumer Affairs Authority guidelines, refusing service based on nationality or race can lead to license suspension.