The Sri Lanka Hotels Association (THASL) has urged the government to introduce a legal framework restricting Agoda, Booking.com and Expedia from listing accommodation providers that are not registered with the Sri Lanka Tourism Development Authority (SLTDA), warning that the unregulated segment is undermining the formal tourism industry.
Speaking at a media briefing in Colombo, industry representatives said legally operating hotels currently pay close to Rs. 25 in tax, licence fees and other charges out of every Rs. 100 earned, while unregistered providers operate without paying these levies or meeting regulatory requirements. The association said the disparity created an uneven playing field and could be affecting foreign-exchange inflows, with revenue from some unregistered establishments possibly flowing outside formal banking channels.
THASL Chairman Asoka Hettigoda said the association is already in discussions with the Ministry of Digital Economy on the issue, and argued that a simple legal amendment could prevent unregistered properties from being promoted on international booking websites. Such an amendment, he said, would also raise government tax revenue and improve accountability across the sector. The association also flagged tourist safety and service-standard risks at unregulated accommodation as a regulatory concern alongside the tax fairness argument.
The digital-platform demand is the most concrete actionable item to emerge from THASL’s busy week of public positioning. The association has separately opposed a proposed new Tourism Act in favour of amending the existing SLTDA Act and previously warned that a proposed liquor licence fee hike would penalise the formal hotel sector while encouraging informal operators. The interventions land against a sector backdrop of March tourist arrivals falling 19% year on year and March tourism revenue plunging 37%, with SLAITO this week using its Sancharaka Udawa 2026 platform to call for a tourism revival push.
Source: Newswire.
