Harsha warns against unlicensed foreign businesses in Sri Lanka

February 25, 2026 at 12:38 PM

Opposition MP Harsha de Silva has raised alarm over what he termed a “tourism paradox” in Sri Lanka, where visitor arrivals are surging but revenue is falling.

Speaking on the issue, de Silva pointed out that foreigners are increasingly running unlicensed cafes, bars, surf camps, and tour operations while staying on tourist visas. 

“Money leaks abroad via overseas payments,” he warned, stressing that such practices undermine the local economy and deprive Sri Lanka of tax revenue.

He further highlighted the growing problem of overtourism, noting that budget travellers are overcrowding popular destinations, damaging natural wonders, and pricing locals out of their own communities. 

“Yala is overcrowded, Sigiriya is strained, and our beaches are polluted,” de Silva said, adding that unchecked tourism is eroding the country’s cultural and environmental assets.

While welcoming innovation and investment, the MP insisted that all operators must follow the same rules, obtain licenses, create local jobs, and pay taxes. 

He called for a shift toward sustainable tourism that prioritises quality over quantity and protects Sri Lanka’s attractions for future generations.

“The government must enforce a proper framework now,” de Silva urged, warning that failure to act would compromise both national revenue and the long-term viability of the tourism sector. (Newswire)