Sri Lanka risks missing a historic opportunity to lead in sustainable tourism due to fragmented leadership, weak governance, and a lack of coherent national strategy, experts warned at the 39th Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) Annual Conference in Colombo. The plenary session, ‘Tourism as a Catalyst for Economic Growth in the Asia-Pacific Region,’ brought together industry leaders, who argued that despite the country’s natural diversity, its tourism model remains reactive, personality-driven, and ill-prepared for a sustainable future.
World Rural Tourism Council Vice Chairman Dr. Rohantha Athukorala said the country’s tourism policies change too often, leaving no room for consistency or data-based planning.
‘When one chairman leaves the institution and goes to the next, you have a new chairman who will do a totally new strategy,’ he said. ‘In some countries I have visited, they have had 17 different approaches in 31 years. What is important is to make tourism a science that is data-driven. Only then will there be a real shift in the industry.’
He pointed to Croatia’s post-war tourism revival as a model Sri Lanka could learn from. ‘They launched a campaign called ‘Full of Life,’ focused on clear brand pillars, and used tourism to rebuild their economy. Today, tourism brings in $ 20 billion annually,’ Dr. Athukorala said. ‘According to a global survey done a few years ago, only 4% of the world knows Sri Lanka. That is the story we have to tell the world if we want to be relevant again.’
He argued that Sri Lanka’s rebranding as the most ethical destination in South Asia could succeed only if guided by a stable, professional structure. ‘Tourism must be run by a CEO, not by changing chairmen with changing agendas,’ he said. ‘That is how we make tourism a science, not an art driven by whims.’
CACCI Asian Council on Tourism Chairman Anura Lokuhetty, drawing on more than four decades of experience in the industry, said Sri Lanka’s abundance of tourism products has paradoxically become its weakness.
‘We are one of the most fortunate countries in the world to have so many tourism products. But that has also misled us,’ he said. ‘The Maldives focused only on sea and beach tourism and built a clear global brand. We have so much to offer that we lose focus.’
Lokuhetty said Sri Lanka must now define its limits and priorities.
‘I don’t think we can handle more than 4 million tourists,’ he cautioned. ‘We have to think sustainably. Every time a crisis hits, we start from scratch with another master plan. What tourism needs is a CEO, not changing committees. The Government seems more focused now, and that is encouraging because tourism can be the biggest source of foreign exchange for the country.’
He noted that globally, tourism ranks among the top four foreign exchange earners in 80 countries and creates around 13 jobs for every $ 1 million in revenue. ‘In Sri Lanka, tourism contributes about 12% to GDP, every $ 1 spent by a tourist generates $ 2.5 in local income and that multiplier effect is vital,’ he said.
Global Strategic Corporate Sustainability Ltd., Chairman and CEO Dr. Ravi Fernando said Sri Lanka already possesses the natural and cultural assets for sustainable tourism but lacks execution. ‘If we can add just half a million sustainable tourists, profitability will rise significantly. But this requires everyone-from policymakers to operators-to understand sustainable tourism,’ he said.
He highlighted the economic opportunity from the global shift towards responsible travel.
‘Globally, there are 1.4 billion tourists today, rising to 1.8 billion by 2035. Within that, sustainable tourists will increase from 260 million to 630 million,’ he said. ‘They spend $ 250 to $ 400 a night and stay twice as long as conventional travellers. Yet, Asia attracts less than 10% of this market.’
Dr. Fernando said Costa Rica provides the most successful model for sustainable tourism.
‘They dismantled their army and invested in education and eco-tourism. Today, 40% of their GDP comes from sustainable tourism,’ he said. ‘Asia needs at least two destinations developed to that standard. Bhutan and Nepal are on the right path. Sri Lanka could be too, if we take coordinated action.’
He also pointed to the need for professional branding and targeted engagement with high-value markets.
‘The sustainable tourists live mainly in Western Europe, North America, and Oceania. They want destinations that protect biodiversity, manage carbon footprints, and offer authentic local experiences. We need to communicate to them with clarity and purpose,’ he said.
Colombo University Sustainable Tourism Unit Coordinator and Tourism Studies Program Head Prof. Suranga Silva said Sri Lanka’s policy frameworks and research capacity lag behind the global shift towards sustainability.
‘While 93% of hoteliers know about sustainable tourism, most informal operators, who make up a large share of the sector, lack awareness and regulation,’ he said. ‘We talk about 4 million tourists, but we don’t have the airports, infrastructure, or environmental safeguards to handle them.’
Prof. Silva said the concept of sustainability must move from rhetoric to reality. ‘
Sustainability is not an agenda for 2030. It is a lifeline for the future of tourism,’ he said. ‘Many countries are now seeing tourism as a phobia because of pollution and cultural disruption. If we keep chasing numbers without value addition, we will face the same fate.’
He said research conducted by his students identified 10 major gaps, from lack of education and communication to inadequate regulation and coordination.
‘Government policy must be evidence-based. We have the potential to become the Costa Rica of South Asia, but for that we must fix our inner mindset. The outer challenges are economic, but the inner challenge is attitudinal,’ he said.
The panel noted that Sri Lanka’s tourism revival depends on leadership, discipline, and a unified national brand built on sustainability. As Dr. Fernando said: ‘The opportunity is immense, but unless we move from ambition to action, from doing less harm to doing more good, we will remain unprepared for the tourism future that is already here.’