The Hon. Ravi Karunanayake

¶ 01 Thank you very much, Hon. Chairman.

¶ 02 Hon. Minister, nothing meaningful has been done to encourage migrant workers who remit foreign exchange to this country. Just as we give certain benefits to exporters, we should extend concessions to overseas workers. At present, they only get a duty‑free allowance of USD 150 or 200 at the airport. We need targeted incentives to motivate them — not for those bringing in USD 1,000, but for those remitting USD 100,000 or 150,000 annually. Likewise, the duty‑free allowance cap at the airport should be raised. If we fail to provide such concessions, money will seep out to other countries. If possible, we can even provide a VIP‑style service for high remitters.

¶ 03 If dollars come legally through the banking system, that is official national income. I emphasize this as a pragmatic way to boost foreign exchange. Remittances are one of the most important inflows — about USD 7 billion is expected this year. Therefore, incentives here are essential.

¶ 04 Next, tourism is a key sector for foreign exchange. In 2024, about 2.1 million tourists visited Sri Lanka, earning around USD 2.5 billion. Forecasts suggest 2.5 million tourists in 2025, with USD 3.5 billion in receipts. If, by 2030, we can develop the industry to attract 10 million tourists, that would be one of the biggest levers to take Sri Lanka out of debt distress. Tourism revenues could be pushed towards a USD 12–15 billion target by 2030. The question is: how do we work toward that? There are many weaknesses that must be fixed, Hon. Minister.

¶ 05 We must develop our airports. Though we have three international airports, what are their conditions? Bandaranaike International Airport is congested. While it’s under development, the JICA loan should be drawn down as quickly as possible. If work is not completed rapidly, once tourist numbers rise, the current bottlenecks will be unbearable.

¶ 06 Currently, 38 airlines operate to Sri Lanka. We should increase frequencies. For example, Qatar Airways runs about 15–16 flights. If we can attract carriers like KLM and Air France back, it sends a strong global signal. We must also build up domestic airlines. Today, you can fly Singapore–Colombo for LKR 40,000–50,000, or from Maldives for about LKR 55,000, but a domestic flight from Colombo to Jaffna, Batticaloa or Hambantota costs around LKR 75,000. Of nine licensed domestic carriers, only two are operating, and mostly as ad‑hoc charters without scheduled services. A loss‑leader policy can seed domestic routes. You are an effective Minister; please take decisive steps with a stroke of the pen to catalyze domestic airlines. We once had 116 domestic air services; though the Air Force operated some, regulatory constraints now block progress. If a private company is registered and runs such services, it would significantly benefit tourism. At the Ministry’s Advisory Committee, I also raised issues around Booking.com.

¶ 07 Platforms like Agoda, Airbnb, and Booking.com must be registered properly. Today, most of the money settles abroad and only about 10–12 percent filters to Sri Lanka. While operators show some token local presence, the dollars still flow out — that is a major obstacle. Please act decisively.

¶ 08 We should study what happens after a tourist lands here, and benchmark against Singapore, Thailand, Malaysia, Phuket, Bali. From the airport, they have information centres that guide visitors on where to go and what to do. Establish such centres at our international airports. Not everything should be purely on social media; provide hard‑copy guides as well. Offer a tourist credit card with defined benefits; that would help.

¶ 09 The biggest current obstacle is scams within the Cultural Triangle. A foreign tourist might pay USD 150 for an entry, but due to various hassles, end up spending another LKR 150,000 unnecessarily. Streamlining procedures at key sites will drive repeat tourism.

¶ 10 Our internal infrastructure has gaps. Traveling out of Colombo, tourists often have only a limited selection of hotels maintaining a certain quality; clean toilets and information are lacking along routes. These are opportunities for domestic entrepreneurs — promote local products and enterprises through tourism.

¶ 11 Hotel stock is suffering from wear and tear. Expedite land allocations for new hotels — through transparent leases or auctions. I recall your remarks at a hotel opening in your constituency; replicate that proactive approach and make suitable lands available to investors.

¶ 12 It is hard for Sri Lankans to obtain land, but foreigners can take 99‑year leases under the relevant laws and often do not pay proper dues. We risk losing expected revenue if leases are misused. Provide better incentives to domestic entrepreneurs and channel opportunities through local investors.

¶ 13 Hotel grading must be strengthened. About 25,800 establishments are said to be graded, but many more operate. Make registration and grading mandatory through the Sri Lanka Tourism Development Authority. We need this for repeat visitors. Social media amplifies a single negative incident globally, while positives spread slowly; so tighten standards and highlight best practices.

¶ 14 Duty‑free concessions at our airport are hampered by extremely high rents. Compared to Dubai, Singapore or Thailand, our rentals are 25–30 percent higher relative to market. Increase quantities sold and allow foreign passengers to purchase without strict limits. Enable Jaffna’s international airport to serve Indian arrivals with duty‑free options (liquor, jewellery, etc.). Officials must show greater urgency in implementing such facilitation.

¶ 15 On casinos: saying tourism promotion through casinos is a default strategy is simplistic. Casinos exist across many countries now, even in places like the Maldives and Saudi Arabia under certain frameworks. We need a broader, pragmatic plan to drive tourism, not moral panic.

¶ 16 Alcohol licences for hotels are painfully slow — two to three years to register, they say. I don’t drink, so I have no personal stake, but the industry needs efficient licensing. If tourism brings in this much in dollars, stop creating artificial scarcity and rent‑seeking; issue licences transparently within fixed timelines to end unofficial payments. My remarks are forward‑looking.

¶ 17 We have talked about these issues for 27–28 years in Parliament. Budgets come and go with the same ideas, but structural problems remain. We must make real change.

¶ 18 Visas: when Hon. Harin Fernando introduced visa‑free entry for certain countries, interest from European tourists rose. Visa‑free or visa‑on‑arrival is a key selling point. If we can visit Singapore without a visa, we feel welcomed — let us use that logic to attract visitors here.

¶ 19 There is a negative side if administration is lax. A Russian woman with an on‑arrival visa, married to a Sri Lankan, was selling bun packets by the roadside in Pelawatte — is that part of tourism? We don’t remove visas; we administer better. Implement a simple, fast visa system; over‑tightening will deter visitors.

¶ 20 Another leakage: payments for high‑end stays in the south are being settled to foreign bank accounts in Russia, Israel, or elsewhere, bypassing Sri Lanka’s banking system, while local taxes like VAT may be skirted. Locals pay high interest while the tourist pays no local taxes and money exits the country. This harms us. We must fix this with practical knowledge of the industry. From 2028, we will have to service USD 8–9 billion annually; tourism taxes and receipts — more than goods and services exports alone — can quickly help us out of this.

¶ 21 Sigiriya has won multiple international awards recently. Yet a 16 January Daily Mirror note said “Sigiriya not open for night visits.” Our ancient kings built Sigiriya; we should fully leverage it today. Why prohibit visits after 6.00 p.m.? Open it 24 hours with differential pricing — say USD 5 by day, USD 50 by night — and staff accordingly by redeploying surplus public servants. Light-and-sound shows, as in Cairo, should be introduced. Booking.com named Sigiriya the “World’s Most Welcoming City for 2025,” and Sri Lanka has won about 10 awards over the last year — market this properly.

¶ 22 We must also develop entertainment sensibly. If Sri Lanka shuts down after 8.00–9.00 p.m., why would a European visit? Establish regulated late‑evening cultural shows and entertainment zones to extend visitor spend.

¶ 23 Hon. Chairman, the Hon. Gayantha Karunathilleka gave me another four minutes from the Opposition’s time.

¶ 24 On promotion, use Facebook, Instagram and similar platforms effectively — don’t treat them as negatives; the world uses these.

¶ 25 We must pivot to high‑value tourism. In the Maldives, a tourist spends USD 500–600 a day while in Sri Lanka many spend USD 50–75. Why is there such a disparity when we offer so much more? Develop shopping experiences like in Thailand, Singapore and Malaysia; organize safe, upscale night markets, not the current seedy versions tourists complain about. Build MICE tourism — meetings, incentives, conventions and exhibitions — back to Sri Lanka.

¶ 26 Now to foreign affairs, your core subject. This is the bridge to connect Sri Lanka to the world. Our Foreign Policy must be dynamic, proactive, robust, forward‑thinking and rooted in national interests: friends to all, enemies to none. Prioritize economic diplomacy, regional leadership and global strategic partnerships. Don’t box partners as leftist or rightist; embrace India, China, EU, USA, Japan, Korea alike and position Sri Lanka to exploit opportunities. Learn from Singapore’s discipline and investment climate; strikes should remain a thing of the past.

¶ 27 Pursue regional economic integration — ASEAN (as engagement expands), BIMSTEC, IORA, RCEP — for market access. With the free world now led again by Donald Trump, the global discourse shifts from globalization to de‑globalization. Focus on preserving US market access for textiles that support ~800,000 jobs. In tariff wars, address non‑tariff barriers intelligently. Don’t curse the darkness; light a candle and take Sri Lanka to the world.

¶ 28 Hon. Chairman, with your Colombo District affinity, perhaps grant me another minute or two to complete.

¶ 29 Use Sri Lanka as a diplomatic hub. Build close ties with India — just an hour’s flight away. There’s no point frowning at India while seeking friendships 10–20 hours away. Be economic friends, regional friends, friends with the world — friends to all, enemies to none.

¶ 30 Brand Sri Lanka now, to come out of bankruptcy. While some speak of de‑globalization, ask the world to support a financially challenged but human‑value‑rich nation. Position ourselves on the world map via trade and export diversification. Seventy‑seven years after Independence, have we achieved economic freedom? That’s the question.

¶ 31 Free‑trade agreements offer market access — the best path forward. When unit costs fall, we become competitive; more exports mean more dollars and a quicker path out of bankruptcy. We are a nation of poverty in an ocean of prosperity; let’s ensure we truly come out of bankruptcy, not just speak about it.

¶ 32 Leverage tourist diplomacy and financial diplomacy. The IMF programme is tough and not a panacea, but its endorsement matters for exiting bankruptcy. Use financial and tourism diplomacy for economic integration — like Singapore with trade agreements and investments, South Korea with export diversification, Germany with public‑private partnerships. The UAE transformed deserts into a vibrant hub with ~80 million transits at Dubai Airport annually. India targets USD 10 trillion GDP by 2030; if Sri Lanka captures even 1–2 percent of the opportunity space, we can ensure sustained progress. Be proactive and bold; use tourism progressively. Encourage public servants to adopt future‑oriented strategies. Let us not just be rhetoric; let us walk the talk.

¶ 33 Thank you for the extra time.