The Sri Lanka Hotels Association has urged the government of Sri Lanka to take immediate action against the rapid growth of unregistered accommodation providers, warning that the trend is creating unfair competition within the tourism industry.
Speaking at a media briefing in Colombo, industry representatives called for a new legal framework that would permit only establishments officially registered under the Sri Lanka Tourism Development Authority to be listed on major international booking platforms.
The platforms mentioned included:
According to the association, legally registered hotels currently pay significant taxes, licensing fees, and regulatory charges, amounting to nearly Rs. 25 out of every Rs. 100 earned.
Industry representatives argued that many unregistered accommodation providers operate outside the formal system without paying taxes or complying with tourism regulations, creating an uneven business environment.
The association also warned that the issue could negatively impact official foreign exchange inflows, as revenue generated by some unregulated operators may bypass the formal banking system.
Meanwhile, the Tourism Safety and Service Standards Association stated that stronger regulation would improve service quality, accountability, and visitor confidence in Sri Lanka’s tourism industry.
Ashoka Hettigoda said the association is already engaging with the Ministry of Digital Economy Sri Lanka to address the issue.
According to Hettigoda, a simple legal amendment could prevent international booking platforms from promoting unregistered properties while simultaneously improving tax revenue collection and transparency within the tourism sector.
