Tourism battered by Trump’s ‘missiles’
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For the first time in this column I have decided to open with a quote from a revered or dreaded world leader, depending on which side of the fence you stand on.“You’ll have to start learning how to fight for yourself, the USA won’t be there to help you anymore, just like you weren’t there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil,” a frustrated US President Donald Trump has told his European allies who have been reluctant to join ‘fully’ in Trump’s war against Iran. Never before have we faced a situation where the world is kept on pins wondering what a world leader and ‘boss’ will say and do next!
Unbelievable! Here is a man who started the war and created the fuel shortage, now telling the world to find their own fuel supply! The war has serious repercussions across the world. The UN says the US-Israel war on Iran and its ripple effect throughout the Middle East have had a devastating impact on Arab countries, with millions expected to slide into poverty. A UN Development Programme (UNDP) report published this week said that the gross domestic product (GDP) in the region was estimated to decline by approximately 3.7 to 6 per cent after a month of war, equivalent to a contraction of US$120 billion to $194 billion.
The situation is worsening across Asia. Governments are forced to increase fuel prices or reduce tax income, both of which would affect consumers while considering subsidies to cushion the blow to low income groups. While Sri Lankan authorities are at the moment able to manage the economic fallout from the crisis, a problem would arise if the war gets prolonged. Then the economic pain would be severe. Already food prices have risen, power prices have soared and hard-working couples are struggling to make ends meet.
In the Sri Lankan context, tourism is a sector that has been adversely affected – not because of the soaring fuel prices – but because airport hubs in West Asia – Dubai, Doha and Abu Dhabi – are under attack by Iran who has turned the guns on Trump’s allies in this region. These hubs are important transit points for European travellers seeking to fly to an Asian destination. Airfares on these routes are also considered cheaper than direct flights.
The drop in tourist arrivals in Sri Lanka is severe – at least 20 per cent in March largely due to western visitors being unable to fly through these transit hubs. On the cards, finally, is Cabinet approval given to offer free visas to travellers from 40 countries. The proposal now requires parliamentary sanction as it involves government revenue.
This proposal has been in the works since the tenure of the former Ranil Wickremesinghe administration. Will it once again get delayed in seeking parliamentary approval, is anybody’s guess. The tourism industry has been waiting for this to be approved for a long time, along with the long-delayed promotion campaign – two developments, if approved quickly would significantly enhance Sri Lanka’s tourism prospects amidst the conflict.
On the positive side, the industry is trying to woo more arrivals from India, the country’s main source market. India, Russia, the United Kingdom (UK), Germany, Australia and China are the main source markets for Sri Lanka and one would expect the industry to attract more visitors also from Russia, Australia (a large Sri Lanka-origin population) and China, with these destinations offering direct flights to
Sri Lanka through SriLankan Airlines, the national carrier.
In a connected breaking news story, SriLankan Airlines chairman Sarath Ganegoda tendered his resignation from the post with effect from March 31, 2026. Another director on the board, Rohan Goonetilleke, also stepped down. Both are key directors at the Hayleys Group and the rumpus appears to have been a conflict of interests issue as Hayleys is the general sales agent for British Airways, which is planning to resume flights from London to Colombo in October 2026. In another boost to the destination, Sri Lanka hosted a total of over 800 international guests for a destination wedding of entrepreneur Mujtaba Shaikhani and Dr. Hafsha Merchant, an aesthetic medicine doctor from Mumbai, over the weekend.
The four-day celebration was held at the Shangri-La Hambantota Golf Resort & Spa last week, with guests staying an average of five to seven nights and contributing significantly to Sri Lanka’s tourism economy. Guests arrived from the United Arab Emirates, India, Pakistan, the UK and Sri Lanka. Sri Lanka’s MICE (Meetings, Incentives, Conferences and Events) sector to which events like weddings fall into, is certainly taking off with several foreign corporate events
Sri Lanka is aiming for an ambitious 3 million tourist arrivals this year, up from 2.36 million in 2025, but cautious hoteliers say the lack of a destination marketing campaign – delayed for many years – may stump the country’s forecast. Hiran Cooray, a veteran hotelier and chairman of Jetwing Symphony group of hotels, said it is better to target a 10 per cent increase this year to around 2.6-2.7 million because the stumbling block in achieving a higher figure is the delay in launching the long awaited-destination marketing campaign.
Despite favourable arrivals last year, tourist revenue in 2025 was recorded at US$3.2 billion, lower than the 2018 figure of $4.48 billion (when the highest arrivals were recorded). This is because the tourist per spend daily was $170-180 (in 2018), whereas it was $148 in 2025.
Well, it was time to see what the trio had in store for me. Walking to the kitchen to fetch a ‘maalu paan’ and a mug of tea, I could overhear the trio in conversation under the margosa tree. “Elavalu saha ahara mila wadi wela meda peradiga yuddey nisa (Vegetable and food prices have risen because of the Middle East war),” said Serapina. “Apey Aldoris kiwwa eya wikunana udey kaema wala mila thavath ihala yavi kiyala indana thavath wadi wunoth (Our Aldoris was saying his breakfast food would rise further if fuel prices increase,” added Mabel Rasthiyadu. “Lankawey duppath kattiyata aanduwen sahana denna oney egollanta mae mila ihala yana ekata moona denna beri nisa (The government needs to provide some relief to the poor as they cannot manage these prices),” added Kussi Amma Sera.
It is proven beyond any doubt that tourism is the first sector to be affected in a crisis. Whether the industry overcomes the latest man-made disaster and turns around this sector, remain to be seen. Only Trump can decide the fate of many countries including Sri Lanka!
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