Sri Lanka tourism earnings remain stable: Minister

Sri Lanka’s tourism revenue has not declined, and the use of internationally accepted scientific survey methods instead of the previously used data collection system has simply provided a more accurate picture of tourists’ spending patterns, Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath told Parliament today (June 9).

The Minister made the remarks while responding to questions raised by MP Ravi Karunanayake under Standing Order 27(2).

He said the survey method previously used in Sri Lanka was based on a limited sample size and, according to the government, could indicate higher tourism earnings than the actual figures. He noted that internationally recognized survey methodologies are now being followed, allowing authorities to more accurately identify the amount spent by foreign tourists in Sri Lanka.

The Minister stated that there has been no significant change or decline in tourists’ spending behavior and that the main difference is that the data is now being reported more accurately.

During the discussion, MP Ravi Karunanayake raised a supplementary question, claiming that tourist credit card payments are not processed through the Central Bank of Sri Lanka’s LankaPay system but through external payment gateways, resulting in around 2.5% of foreign exchange that should enter the country being lost unofficially.

In response, the Minister said no proper mechanism had previously been established to address the issue. He noted that Sri Lanka had for many years failed to introduce tax systems and collection mechanisms for international digital platforms. He also pointed out that such a mechanism had not been introduced during Karunanayake’s tenure as Finance Minister.

The Minister said the current government is addressing the matter within a short period. According to him, the relevant tax systems have already been introduced, while mechanisms have been established through the budget process to collect taxes from the relevant international organizations and digital platforms.

While acknowledging that some money spent by tourists leaves the country through such transactions, he stressed the need for a proper system to ensure that as much revenue as possible remains within Sri Lanka.

He said new laws and technological measures are required to achieve this objective and added that the government is working to implement both legal and technical solutions as quickly as possible.

The Minister further stated that integrating transactions into the LankaPay system is among the key measures already being pursued toward that goal.