Govt. to overhaul tourism governance with new apex Commission

• Cabinet nod to establish National Tourism Commission and new Tourism Act 
• Tourism Deputy Minister Prof.Ruwan Ranasinghe says new Commission will function as an apex body overseeing tourism development
• Asserts National Tourism Commission will sit above the existing institutions — SLTDA, SLTPB, SLCB, while SLITHM will operate separately
• States apex body designed to address complexities,reduce delays in decision-making, procurement processes
• Outlines Govt. aims to bring at least 80% of industry under formal regulation, as 60% in informal sector 
• Announces plan for Social Welfare Protection Fund to provide financial safety net for industry workers 

The Government is set for a major shake-up in its tourism industry with the establishment of a National Tourism Commission, a move aimed at streamlining decision-making and boosting efficiency. 

Tourism Deputy Minister Prof. Ruwan Ranasinghe on last week revealed that the initiative is part of broader reforms including a newly approved Tourism Act, to modernise regulations and enhance governance in the industry.

Speaking in a panel discussion at the Sri Lanka Economic Summit, organised by the Ceylon Chamber of Commerce, he disclosed both proposals were approved by the Cabinet of Ministers at their meeting last week.

The new Commission will function as the apex body overseeing tourism development. 

“The National Tourism Commission will sit above the existing institutions — Sri Lanka Tourism Development Authority (SLTDA), Sri Lanka Tourism Promotion Bureau (SLTPB) and Sri Lanka Convention Bureau (SLCB), while the Sri Lanka Institute of Tourism and Hotel Management (SLITHM) will operate separately,” he explained.

Prof. Ranasinghe pointed out that implementing key tourism projects has been bogged down by bureaucratic hurdles, particularly in sensitive areas such as Sigiriya and Yala National Park where multiple Ministries and State agencies have jurisdiction.

“There are so many challenges when it comes to getting proposals implemented when working with line Ministries and agencies. The National Tourism Commission will take control of such complexities,” he said. 

The restructuring, he explained, is designed to make governance more efficient by reducing delays in decision-making and procurement processes. “When it comes to hard decisions, involving multiple Ministries and agencies slows everything down. This new structure will allow us to act more decisively and efficiently,” he added. 

Noting that the tourism industry remains largely informal, with 60% of businesses operating outside official regulatory frameworks, he said it has created challenges in standardisation, taxation and fair competition. 

“Although it has soured entrepreneurial growth, in one way it is very difficult to standardise the industry. It has also resulted in a major loss of revenue to the Government and it is unfair to formal businesses that pay taxes,” he opined. 

The Deputy Minister said the Government now aims to bring at least 80% of the industry under formal regulation, ensuring compliance with guidelines, supervision and monitoring. “To support this, Sri Lanka has begun discussions with its funding agencies such as Asian Development Bank (ADB) to explore potential technical assistance,” he noted.

Recognising the volatility of the tourism sector, particularly after multiple crises since 2019, Prof. Ranasinghe announced plans for a Social Welfare Protection Fund to provide a financial safety net for those working in the industry with seed capital provided by the Government.

“Tourism is a very sensitive industry. Over the years, we have seen how internal and external shocks have impacted livelihoods. This fund is designed to provide a financial buffer in times of crisis and we are currently working towards making it a reality,” he said. 

He said with the impending reforms, the industry is poised for a more structured, sustainable future, balancing growth, governance, inclusivity and resiliencein an increasingly competitive global environment.

“The NPP manifesto pledged of creating an inclusive, sustainable tourism industry and we will do it,”Prof. Ranasinghe said. (C de S )

Pic  by Upul Abayasekara