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Tourism industry hit by immigration delays and inefficiencies

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Sri Lanka’s tourism industry is facing severe setbacks due to prolonged delays and inefficiencies at the country’s main airport, Bandaranaike International Airport (BIA).

Reports of long-queues, slow moving lines for visa on arrival, and indifferent service by immigration officers have marred the experience for tourists and returning Sri Lankans alike, resulting in a significant drop in daily arrivals and substantial economic impact. 

According to the Sri Lanka Tourism Development Authority (SLTDA), daily arrivals have dropped drastically from around 6,000 visitors to 2,000 since 18 August. 

Industry feedback suggests that the country may have lost around 40,000 potential tourists in August alone, reflecting an estimated economic loss of $ 120 million.

Despite these alarming figures, there has been little response from the authorities responsible for immigration. 

“We have repeatedly been trying to engage with the Department of Immigration and Emigration Controller General for over a week without success,” a top official of Sri Lanka Tourism told the Daily FT.

He said that Sri Lanka Tourism has been lobbying alongside the Tourism Ministry to address these issues, including the simple step of increasing the number of counters for on-arrival visas. Yet, these efforts have been met with silence.

The situation has sparked criticism from industry stakeholders and travellers. Complaints highlight the stark contrast between the warm welcome Sri Lanka promises and the cold, apathetic reality encountered at its main airport.

These issues have raised concerns about the commitment of immigration services to supporting the tourism industry, a vital foreign exchange generating industry to the economy.

Industry stakeholders claimed that the silence from officials and the lack of concrete actions to improve the situation only add to the frustration.

“The inefficiencies at the BIA are not only deterring tourists, but also tarnishing the image of Sri Lanka as a welcoming destination. Immediate reforms are crucial to streamline the visa, immigration process to show a genuine commitment to reviving the tourism industry,” industry stakeholders pointed out. 

Source – DailyFT

Economy

540 modern sanitation facilities to be established in Fuel stations

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The Government has launched a national-level initiative to install modern sanitation facilities at fuel stations across the country under the “Clean Sri Lanka” programme. 

An MoU was signed between the Presidential Task Force on Clean Sri Lanka, the Ministry of Energy and the island’s four major fuel providers: Ceylon Petroleum Corporation (CPC), Lanka IOC PLC (LIOC), Sinopec Energy Lanka (Pvt) Ltd and RM Parks (Pvt) Ltd.

Under the three-year programme, 540 modern public sanitation facilities will be established at selected fuel stations islandwide. 

By the end of 2025, at least 100 of these facilities are expected to be operational, providing clean and user-friendly amenities to travellers across the country.

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Economy

World Bank Group announces $1 Billion Support Package for Sri Lanka

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The World Bank Group today announced a major initiative to support job creation and unlock private sector growth in Sri Lanka, backed by more than $1 billion in financing over three years. The package targets sectors with high potential for employment and investment—energy, agriculture, tourism, and regional development.

The initiative aims to expand economic opportunity, strengthen local industry, and attract private capital to support long-term growth. It was announced after a meeting in Sri Lanka between President Anura Kumara Dissanayake and World Bank Group President Ajay Banga—marking the first visit by a Bank President in two decades and signaling a renewed commitment to the country’s economic recovery and future.

“This support from the World Bank Group is an investment in the people of Sri Lanka,” said President of Sri Lanka Anura Kumara Dissanayake. “It will help create jobs, support small businesses, and open up new opportunities across the country. We are committed to ensuring this partnership delivers real change for our communities.”

World Bank Group President Ajay Banga highlighted the importance of acting now to build on Sri Lanka’s progress.

“This is a moment of opportunity for Sri Lanka,” said World Bank Group President Ajay Banga. “With progress underway to stabilize the economy and restart growth, core elements for job creation are in place. Now is the time to accelerate reforms and create the conditions for private enterprise to thrive—particularly in sectors that can create jobs at scale.

The World Bank estimates that nearly one million young people will enter Sri Lanka’s workforce over the next decade, yet only about 300,000 jobs are projected to be created over the same period.

The new financing directly targets this gap—mobilizing public and private investment to create more and better jobs. The immediate sectors targeted in the $1 billion package includes:

Energy ($185 million): Supporting new solar and wind generation equivalent to 1 gigawatt of capacity, aimed at lowering electricity costs for families and businesses. The project is expected to mobilize over $800 million in private investment and includes $40 million in guarantees.

Agriculture ($100 million): Helping farmers and agribusinesses adopt new technologies, access markets, and attract private capital. The program will benefit more than 380,000 people—including 8,000 agri-food producers—and is expected to leverage $17 million in private financing.

Tourism ($200 million): Expanding the sector by protecting natural and cultural assets, creating jobs, and ensuring benefits flow to local communities.

Regional Development ($200 million): Investing in infrastructure, local industries, and job creation in historically underserved areas—including the Northern and Eastern Provinces.

This integrated approach—bringing together the World Bank’s financing, knowledge, and private sector tools—is a concrete example of the institution’s unique ability to support economic growth and job creation at every stage. It reflects the Bank’s focus on supporting job-generating sectors and enabling private investment.

The World Bank Group has been a trusted partner to Sri Lanka for more than 70 years, with current investments exceeding $2.2 billion. Today’s announcement deepens that partnership—focused on enabling opportunity, expanding private sector growth, and supporting the country’s path to a more resilient and inclusive economy.

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Economy

World Bank Group president to visit Sri Lanka after 20 years

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Ajay Banga is visiting Sri Lanka, marking the first presidential visit to the country by a World Bank Group president in nearly 20 years.  The visit comes at a critical moment, as Sri Lanka continues its path toward economic recovery and seeks to build a more resilient, inclusive, and private sector-led future.

The visit follows an invitation from President Anura Kumara Dissanayake, extended during a congratulatory call between the two leaders shortly after his appointment last November.

Mr. Banga’s trip reflects the strong and enduring partnership between the World Bank Group and Sri Lanka, which spans more than 70 years. His visit will focus on supporting job creation, boosting private investment, and driving an inclusive and sustainable economic recovery for the country.

While in Sri Lanka, Mr. Banga will meet with President Dissanayake, Prime Minister Harini Amarasuriya, and senior government and private sector leaders. These discussions will center on how Sri Lanka can overcome current challenges and seize new opportunities as it continues to recover economically and socially.

The World Bank Group currently supports Sri Lanka through a portfolio of projects worth $2.2 billion, including both public and private sector investments. Recent World Bank reports have noted Sri Lanka’s progress but also stressed the importance of tackling poverty and maintaining reform momentum to ensure long-term success.

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