The Hon. Ravi Karunanayake

¶ 01 Hon. Speaker, under Standing Order 27(2), I seek a clarification on nationally important issues in tourism: recorded arrivals increasing while per capita spend declines, weak foreign exchange inflows to the banking system, and 40,000 hotel units unregistered—indicating regulatory failure.

¶ 02 In 2025, Sri Lanka recorded over 2.36 million arrivals; total tourism revenue rose only slightly to USD 3.22 billion while per-tourist spend fell by about 12% year-on-year (from USD 184 to USD 148). Central Bank reserves do not reflect commensurate FX inflows; this raises concerns about revenue quality, offshore settlements, informal transactions, and weak enforcement.

¶ 03 Accordingly:

¶ 04 1. What are the key structural reasons—source market mix, length of stay, and pricing mechanisms—behind lower per capita spend amid higher arrivals?

¶ 05 2. What was the total tourism FX actually converted through licensed commercial banks and reflected in Central Bank reserves in 2025?

¶ 06 3. How does this compare with the Sri Lanka Tourism Development Authority’s reported total tourism earnings, and what explains any variance?

¶ 07 4. What is the estimated FX leakage via online booking platforms providing services to Sri Lanka, given that payments are processed offshore through non-Central Bank gateways, leading to tax erosion—roughly Rs. 1 billion per month considering combined indirect taxes per invoice?

¶ 08 5. What share of tourism activity is estimated to be conducted by unregistered accommodation providers and informal operators outside the banking system? Press reports indicate 40,000 such unregistered units.

¶ 09 6. Does the Government accept that a material share of tourism FX bypasses the domestic financial system without strengthening official reserves?

¶ 10 7. Why has enforcement of mandatory registration, settlement through banking channels, and FX repatriation remained weak despite existing legal powers?

¶ 11 8. When will the Government present to Parliament a tourism policy explicitly linked to earnings, FX inflows, and reserve accumulation, rather than merely reporting arrival numbers daily?

¶ 12 9. Is the Government aware that overseas credit cards are widely used for tourism payments in Sri Lanka with invoicing and settlement occurring offshore—similarly with international booking platforms—thereby avoiding domestic taxation? What corrective actions are being taken?

¶ 13 Thank you.