📈 Why Sri Lanka’s 2005 Tourism Act Remains Vital for Stability

The local hospitality sector advocates for refining rather than repealing the Tourism Act No. 38 of 2005, emphasizing its role in sustained growth and investor confidence over the last two decades. • Governance Framework: The Act established specialized institutions including the Sri Lanka Tourism Development Authority (SLTDA) and the Sri Lanka Institute of Tourism and Hotel Management (SLITHM). This separation of functions has historically reduced political interference and professionalized regulation. • Financial Trust: Industry cooperation regarding the one percent turnover levy is strictly tied to the Act’s guarantees of industry representation and transparent fund usage. Any repeal risks undermining private-sector trust. • Proposed Reforms: Industry leaders support limited amalgamation, such as merging the Promotion Bureau and the Convention Bureau, provided that: Leisure and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors maintain separate budget lines. Private-sector leadership in marketing is preserved. • Sector Priorities: Recommendations focus on digitizing approvals and aligning training with modern human capital needs rather than centralizing governance. • Strategic Outlook: With tourism serving as a critical economic pillar, stakeholders argue that institutional stability is essential to maintain international branding and avoid reversing decades of progress. _Note: Summary based on industry veteran perspectives as of January 2026._