The Sri Lankan government is taking measures to regulate online hotel booking platforms due to concerns over tax contributions from existing operators, according to Foreign Affairs and Tourism Minister Vijitha Herath.
Speaking in Parliament today, Herath stated that discussions are underway with local companies to introduce multiple booking platforms, aiming to reduce the dominance of a single entity in the sector.
He pointed out that platforms like Booking.com operate in Sri Lanka without official registration or tax contributions.
“Currently, one entity controls most online hotel bookings.
We are working to introduce multiple platforms while ensuring that existing ones comply with regulations and pay their fair share of taxes.
Companies like Booking.com generate significant profits from Sri Lanka but do not contribute the necessary tax revenue,” he said.
As part of efforts to break this monopoly, Herath revealed that a group of Sri Lankans in Brisbane, Australia, has developed an alternative OTP-based platform to offer a competitive option in the market.
