Sri Lanka has officially launched its first structured national dialogue on tourism economic leakages, marking a significant step toward retaining more tourism-generated revenue within the domestic economy.
The initiative, spearheaded by the Sri Lanka Tourism Development Authority (SLTDA) in collaboration with UN Tourism, was inaugurated at a high-level stakeholder workshop held in Colombo on January 28. The dialogue brings together policymakers, industry leaders, tourism operators, development partners, and private-sector representatives.
Tourism economic leakages refer to the portion of tourism income that flows out of the country through imports, foreign intermediaries, offshore commissions, and informal business practices. Recent assessments indicate Sri Lanka may be losing nearly USD 1 billion annually due to such leakages across key tourism segments, including accommodation, tour operations, and wellness tourism.
Addressing the forum, officials emphasized that the national dialogue goes beyond identifying challenges and is focused on developing practical, measurable solutions. Key areas under discussion include strengthening local supply chains, promoting locally sourced goods and services, formalising informal tourism businesses, and increasing digitalisation across the sector.
The initiative also aims to enhance sustainability standards, improve workforce skills, and reposition Sri Lanka as a high-value tourism destination while ensuring broader economic benefits for local communities.
Outcomes of the dialogue will contribute to a three-year action plan designed to systematically reduce leakages, improve revenue retention, create employment, and boost the overall resilience of the tourism industry.
Tourism remains one of Sri Lanka’s most important foreign exchange earners, and authorities believe that reducing economic leakages is essential to maximising the sector’s contribution to national growth as visitor arrivals continue to recover strongly.
