New Product Development

In order to facilitate growth in the Tourism industry, the Sri Lanka Tourism Development Authority(SLTDA) has teamed up with the government and private and foreign sectors in order to draw investment and further development.

To stay ahead of the competition, proactive tourism companies must constantly look for new product innovations. The traditional product life cycle theory indicates that typically a product will have a s-curve with stages of growth, maturity, saturation and decline in sales and profits. This theoretical model seems to hold true also for tourist products, which means that the question of product development and new- product innovations is important in tourism companies.

The role of tourism products for sustainable tourism development would involve successfully developing products that would utilize the profitable use of resources and result in economic sustainability. Moreover, it would consider other principles of sustainable tourism which would help create a sustainable tourism product.


Development Projects Funded By The Government

  • Dutch Bay Resort – Kalpitiya

  • Dedduwa Lake Resort

  • Bentota Re-development Programme

  • East Coast Development

Private Sector Investments

As per the Sri Lanka Tourism Development Act of No. 14 of 1968, the Sri Lanka Tourist Development Board is the sole authority in processing and approving Tourism related development projects.

New Tourism Development Areas

The former Sri Lanka Tourist Board declared eleven sites as Tourist Development Areas under Section 73A from the Tourist Development (Amendment) Act No. 2 of 1987, which was an amendment to the Tourist Development Act No. 14 of 1968. In these areas the Sri Lanka Tourist Board was able to regulate only tourism activates.

  • According to the Tourism Act No 38 of 2005 (TA), the Sri Lanka Tourism Development Authority (SLTDA) is empowered with powers to regulate and monitor even other economic activities. Under the new act once a site is declared as a Tourism Development Area (TDA) then they need to ensure that all new developments are carried out according to the rules and regulations formulated by the SLTDA.

The process

  • To identify the sites to be declared as Tourism Development Areas.

  • Prepare site specific regulations to facilitate to ensure sustainable development, and monitor activities within TDA.

  • The regulations are to be prepared in consultation with the Minister of Environment (Sec 29 (3) (a) and (c) TA) and the Commissioner of Archaeology (Sec 29 (4) (a) and (b) TA ) or any other relevant Minister (Sec 29 (5) TA ). Such regulations shall not apply to public roads, public monuments, places of worship, public parks, public offices, schools, dispensaries and other public places and facilities provided by either the government, Provincial Council or a local authority. (Sec 27 (4) (a) TA )

  • According to Section 26 (2) of TA conduct public hearing prior to declare TDA.

  • According to Section 29 (2) of TA obtain the recommendation of the Central Environmental Authority.

  • According to Section 27 (2) of TA the Minister of Tourism, on the recommendation of the SLTDA may gazette TDAs. Such order shall be valid for ten years.

  • According to Section 30 of TA - Within the TDA, the SLTDA may make regulations in consultation with the relevant subject Minister and declare Trekking areas and nature trails, and charge fees for the use.

  • SLTDA shall have jurisdiction over TDA (Sec 25 TA ) to exercise powers, duties and function efficiently to ensure sustainable development. (Sec 27 (3) TA ). It includes environmental planning and preservation of Archaeology under the National Environmental Act No. 47 of 1980 and Antiquities Ordinance (Chapter 18) (Sec 29 (1) TA )

  • If any one contravenes any regulation shall be guilty of an offence (after trial), liable to a fine not less than Rs. 25,000 and not exceeding Rs. 100,000. (Sec 28 (1) TA)

Other Requirements

  • To prepare list of facilities and places of historical or environmental interest which amount to tourist attractions.

    (Sec 26 (3) (3) TA ).

  • To provide security and safety to the persons entering, and to prevent or mitigate health hazards. (Sec 27 (4) (b) TA )

Follow-up actions

  • To obtain the services of a Legal Consultancy firm to study the Tourism Act no 25 of 2003 and other relevant Acts (CCD, UDA, etc), and prepare the procedure to be followed to declare Tourism Development Areas by SLTDA. The consultancy firm needs to obtain the concurrence of the relevant government departments and the Attorney General’s Department for the recommended procedure.

  • To identify the sites to be declared as Tourism Development Areas.

  • For the selected TDAs prepare site specific rules and regulations.

  • In each TDA setup a SLTDA regional office with necessary resources (Human, Finance, and proper legislations).

Registration of Tourist Enterprises and Tourist Services

Tourist establishments were registered according to the provision in the Tourist Development Act No. 14 of 1968 (TDA). According to Section 68 (2) of Tourism Act No. 38 of 2005 (TA) the sections 77, 78, 79, 80, 81, and 82 of Chapter I Part IV of the Tourist Development Act number 14 of 1968 are repealed. Further, the relevant schedules are also repealed.

Sec 77 of TDA  Tourist Hotels Code (4th Schedule)
Sec 78 of TDA  Travel Agent’s code (5th Schedule)
Sec 79 of TDA    Tourist Guide Lecturers’ code (6th Schedule)
Sec 80 and 81 of TDA Specified Tourist Services Code (7th Schedule)
Sec 82 of TDA Any other codes

Need to review the present criteria and make any changes necessary, in order to develop, enforce and maintain locally and internationally accepted standards. Then, the Minister on the recommendation of SLTDA will gazette the order to classify and register Tourist Enterprises and Tourist services. (Sec 48 (1) TA ). Such order to be placed before the Parliament. (Sec 48 (2) TA)




  • To prescribe the procedure to be followed for registration of Tourist Enterprises and Tourist Services, and the manner of issuing license. (Sec 48 (3) (6) (7) (8) TA).

  • Every Tourist Enterprise and Tourist Service falling within the criteria to be registered with SLTDA and a license to be issued

    (Sec 48 (3) TA).

  • Registration fee and license fee to be published by a gazette notification (Sec 48 (4) TA).

  • To maintain a register of licensed Tourist Enterprises and Tourist Services by SLTDA.

  • All Tourist Enterprises and Tourist Services registered and licensed with the Authority to notify in every advertisement and communication. (Sec 48 (9) TA).

  • It is an offence for not registered Tourist Enterprises and Tourist Services with the SLTDA, to publish them as registered with SLTDA (Sec 48 (10) TA ).

  • No Tourist Enterprises or Tourist Services that confirms to our criteria shall carry on business unless they are registered with SLTDA. If they carryout then it is an offence (Sec 48 (4) TA)

  • Any person where the license is refused or cancelled may appeal to a tribunal appointed by the Minister for this purpose. The composition of the Tribunal and the procedure to be followed by the tribunal to be prescribed (Sec 51 TA)

  • The Minister shall prescribe the symbol of the Authority. All duly registered tourist establishments are authorized to use or display the symbol as prescribed (Sec 52 (1) TA). It is an offence to use the symbol without the sanction of
    SLTDA (Sec 52 (2) and (3) TA). The fine is not stipulated in the Act.

  • It is an offence for not registered Tourist Enterprises and Tourist Services to publish them as registered with

    SLTDA (Sec 48 (10) ).

Code of Conduct for Tourist Enterprises and Tourist services:

  • The Minister on the advice of the SLTDA shall make regulations prescribing Codes of Conduct for all Tourist Enterprises and Tourist Services. (Sec 49 (1) TA).

  • If the Tourist Enterprises and Tourist Services do not comply with the Code of Conduct then liable to a fine of maximum Rs. 100,000.

Classification of Tourist Enterprises and Tourist services:

  • The Minister on the advice will prescribe the classification standards of the Tourist Enterprises and Tourist Services.

    (Sec 50 (1) (2) TA).

  • If the standard specified is not maintained, then steps to be taken by such establishment to improve the standards.

  • If the establishments fails to maintain the standards then to cancel the license by SLTDA (Sec 50 (3) TA).

Follow up actions to ensure that the SLTDA comply with the Tourism Act No. 38 of 2005

  • To obtain the services of a Legal consultancy firm, to prepare the necessary required documents needed according to this Act.

  • We will work together with the selected Management Consultancy firm to identify the human and financial resources required.

  • It is also planned to setup Tourism Development Areas (TDA) under this Act. If regional offices are to be set up within the TDA then one of the Corporate Service Division staff to be employed in the same office to ensure the quality of tourist enterprises.

  • To continue with the conducting of the monthly mobile services in different districts.