Sri Lanka stands on the cusp of a transformative leap in tourism. On June 28, 2025, the Cabinet approved a proposal to replace the existing Tourism Act No. 38 of 2005 with a far more responsive, modern, and growth‑oriented legal framework.(Sri Lankan Tourism) With this progressive overhaul, Sri Lanka can unlock untapped potential—and here’s how this legislative reform offers immense value to our tourism sector.
1. A Dynamic Regulatory Framework for a Dynamic Industry
Tourism today operates at the intersection of changing traveler preferences, tech innovations, and sustainable practices. The outdated 2005 Act lacks the agility needed to adapt. The draft New Tourism Act is designed to transcend those limitations, reflecting evolving trends, enabling investment, and promoting responsible tourism.
Why it matters: A modern legal foundation equips Sri Lanka to pivot swiftly—offering immersive river safaris, community-based homestays, wellness retreats, or digital tours. Tour operators will gain confidence knowing regulations empower innovation, not restrain it.
2. Streamlined Governance—Faster Progress, Less Red Tape
A key feature of the reform is establishing a National Tourism Council—an apex body to consolidate decision-making, reduce bureaucratic overlaps, and fast-track approvals.
The impact: One central authority means quicker greenlights for sustainable lodges, conservation-based eco-tours, and infrastructure upgrades. Projects that used to stall can now move forward in months, not years. That’s growth—and jobs—accelerated.
3. Investment-Ready Sri Lanka
By incorporating investment facilitation into the law’s core fabric, Sri Lanka signals clarity and openness to global and local investors.
Investor reassurance: Clear rules around land use, licensing, tax breaks, and partnerships lower risk and attract capital. Whether it’s a boutique hill-country resort or a luxury coastal sanctuary, stakeholders will see Sri Lanka as a safe, profitable destination.
4. Sustainability Embedded in Legislation
The New Act sets out to encourage sustainable tourism development, safeguarding environmental integrity while delivering economic rewards.
Lasting benefits: From incentivizing wildlife-watching tours with eco-certifications to empowering community‑led village experiences, sustainability becomes foundational. Tourism will thrive alongside vibrant ecosystems and flourishing communities.
5. Stronger Stakeholder Engagement
Deputy Tourism Minister Prof. Ruwan Ranasinghe emphasised stakeholder input will be integral during the one‑year drafting process.
Why this matters: Including operators, SMEs, communities, and conservationists ensures the law is realistic, relevant, and inclusive. Shared crafting fosters shared ownership—which boosts on-the-ground compliance and innovation.
6. Competitive Edge for Destination Marketing
A modern Act underpinned by effective governance creates room to rethink destination branding, digital marketing, and festival promotion.
Opportunities ahead: Sri Lanka can launch global campaigns—from “Soulful Sri Lanka” wellness retreats to eco‑safari adventures. The legal certainty draws PR budgets, tech innovations for bookings, and influencer engagement. This isn’t incremental—it’s exponential.
7. Building Resilience for Future Shocks
The last decade taught us the cost of rigidity: pandemics, natural disasters, and economic downturns demand a resilient tourism model.
New Act resilience: It can enshrine rapid-response protocols—like crisis-management frameworks, financial relief mechanisms, and digital pivoting (e.g., virtual travel). The tourism sector stays nimble, buoyant, and prepared.
8. Enhancing Community Prosperity
When the law supports community-based tourism—home stays, local guiding, rural craft experiences—it spreads income beyond urban centres.
Local empowerment: Visitors gain authentic experiences, and regions gain empowerment. Eco‑villages in Ella, agro‑tours in Hambantota, or wellness retreats in Galle benefit everyone, sustained by legal protection and clear benefit-sharing models.
9. Workforce Development & Regulation
A revised Act can strengthen regulations on workforce training, licensing, and accreditation.
Professionalism for free: From trained tour guides with heritage sensitivity to certified hospitality workers across regions, the Act can elevate service quality. When tourists return with delight, they bring brand loyalty for life.
10. Accountability Through Transparency
By establishing transparent oversight—via the apex council, clear roles, and digital monitoring—the New Act can curb corruption and misuse.
Trust as currency: Tourists trust destinations that self-regulate responsibly. Investors back systems that ensure accountability. Communities see equitable returns. And Sri Lanka strengthens its standing on the global tourism stage.
