LNP – Budget expectations: Tourism sector urges reasonable duty concessions on vehicle imports

The Chairman of the Sri Lanka Tourism Development Authority (SLTDA), Buddhika Hewawasam says that the government must focus on enhancing air connectivity to the nation in order to achieve its long-term tourism targets by 2030.

He also urges the government to provide significant concessions on import duties for vehicles used in the tourism sector through the upcoming budget, highlighting that the restrictions on vehicle imports negatively impacted the overall quality of Sri Lanka’s tourism sector.

“Sri Lanka’s tourism target set for this year is three million tourists and USD 4 billion in revenue. So this target is going to be extended for the next five years of time. By 2030 we’re looking for USD 10 billion revenue and double our particular tourism numbers, at least 8 million to 10 million tourists. This is actually a possible target but a challenging one considering the particular factors that we need to be aligned with the budget as well as the government’s strategic direction”, Hewawasam noted.

“One is the air connectivity to the country. We have good air connectivity to some destinations but overall we need to improve. And on the other side, we need a lot of investments for tourism infrastructure development as well tourism hotels, accommodation sector and various other kind of entertainment amenities.”

Furthermore, he emphasized: “So, we expect budgetary concessions as well as government support for such kinds of investments for continuous develop this particular sector. We actually acquire a lot of government lands and try to make them more investment friendly. We need more properties, more exclusive tourism accommodation as well as tourism attractions to attract tourists to Sri Lanka.”

“Vehicle importation to Sri Lanka was restricted. That negatively affected tourism. One of the budget proposals we made is to be providing concessions. We’re not asking for duty free or any other kind of a thing, but a reasonable concession on duty, which is in par with last year or year before in order for us to buy vehicles necessary for tourism industry”, the tourism regulatory body’s chairman added.

“Last few year, the tourism industry had a lot of financial difficulties. Some of the hotels as well as properties… We expect the budget [2025] to positively consider that aspect”, he said.