By The Pulseline News Desk
Minister of Foreign Affairs and Tourism Vijitha Herath has rejected suggestions that Sri Lanka’s tourism earnings have declined, stating that recent revenue figures are more accurate due to the adoption of internationally recognised scientific survey methods.
Responding to questions raised in Parliament by opposition member of parliament (MP) Ravi Karunanayake under Standing Order 27(2), the Minister explained to the House on Tuesday (9) that previous estimates of tourism income were based on limited survey samples that tended to overstate visitor spending. The revised methodology, he said, provides a more realistic picture of how much foreign tourists actually spend while in Sri Lanka.
According to Herath, the change in reported revenue figures should not be interpreted as a reduction in tourist expenditure. Instead, it reflects the correction of data collection methods that had produced inflated results in the past.
“Tourists’ spending patterns have not changed significantly,” he told Parliament, emphasising that the current figures are based on more reliable and internationally accepted standards of measurement.
The discussion also highlighted concerns over the leakage of foreign exchange through overseas payment gateways. Raising a supplementary question, Karunanayake pointed out that a considerable share of credit card transactions made by tourists are processed through international payment systems rather than the Central Bank of Sri Lanka’s LankaPay network.
He argued that this practice results in an estimated 2.5 percent loss of foreign exchange earnings, as transaction-related revenues and associated benefits flow out of the country.
Acknowledging the issue, Herath noted that successive governments had failed to establish a mechanism to address the problem. He said the current administration has already taken steps through the national budget to introduce a tax framework targeting international digital platforms and payment applications operating within Sri Lanka.
The Minister stressed that while some degree of revenue outflow is unavoidable in an increasingly digital and interconnected global economy, the Government is working to ensure that a greater share of tourism-related income remains within the country.
Efforts are currently underway to strengthen both the legal and technological infrastructure required to achieve this objective, he said. Integrating more transactions into the LankaPay system has been identified as a key component of that strategy.
Herath further stated that the Government is moving swiftly to introduce the necessary regulatory measures and technical solutions to safeguard tourism-related earnings. These efforts, he added, form part of a broader initiative to maximise the economic benefits of Sri Lanka’s growing tourism sector.
Concluding his remarks, the Minister underscored the Government’s commitment to improving revenue retention through stronger oversight, modernised payment systems, and enhanced regulatory frameworks designed to support the long-term sustainability of the tourism industry.
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