• Concerns over SL’s entertainment laws

Sri Lanka, a country still grappling with foreign exchange for its day-to-day needs, has largely depended on its tourism industry for decades. The nation’s tourist destinations, known for their scenic beauty and affordability, have attracted millions of visitors to the island, making the tourism sector one of its main revenue-generating industries. 

Although many factors contribute to the growth of this crucial sector, certain laws, regulations, and practices serve as barriers that adversely affect the industry, jeopardising the country’s fiscal stability at this critical time. 

Music and entertainment, which are highly integrated with the tourism sector in any country, play a significant role in attracting tourists, particularly the youth. However, in the Sri Lankan context, many involved in the tourism sector claim that certain laws and regulations governing music and entertainment have unfavourably impacted the tourism sector, particularly in coastal tourist spots, due to the restrictions imposed by these regulations. 

A video circulating on social media recently sparked controversy after a tourist expressed frustration over Police shutting down a DJ performance at a hotel in Matara at 10 p.m. The footage, which quickly gained traction online, criticised the intervention, with claims that such restrictions were a recent measure imposed by the Government.

In response to the growing criticism, Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa addressed the issue, clarifying that the policy on noise restrictions was not new. He explained that the 10 p.m. cutoff for sound events from Monday to Thursday had been in place since a Supreme Court ruling in 2005. Under the same directive, sound events are permitted to continue until 1 a.m. on Fridays and Saturdays and until 12.30 a.m. on Sundays. 

Against this backdrop, The Sunday Morning explored the real story of how these barriers related to the entertainment sector have affected the tourism industry in Sri Lanka. 

Legal background 

This discussion dates back to 2007, when the Supreme Court issued a directive to law enforcement authorities regarding the issuance of permits for loudspeakers and other instruments for the amplification of noise. This directive, stemming from the judgment in the case of Ashik vs. Bandula and others, marked an indirect but significant impact on the country’s tourism industry. 

In this judgment, the bench stated that “no permits shall be issued under Section 80(1) of the Police Ordinance for the use of loudspeakers and other instruments for the amplification of noise as specified in that section, covering the period from 10 p.m. to 6 a.m. Such permits may only be issued for special religious functions and other special events after ascertaining the views of persons occupying land premises in the vicinity, with a record of such matters to be maintained, and the grant of any such permit shall be forthwith reported to the nearest Magistrate’s Court.” 

To this day, the Police Department adheres to this verdict when addressing similar issues. 

Industry barriers 

In this context, The Sunday Morning contacted The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar, who is also a member of the Board of Directors of the Sri Lanka Tourism Development Authority (SLTDA), for his insights and proposals regarding the related barriers and shortcomings. 

He noted that playing music and organising night events should be permitted as long as they did not disturb the public. He also stressed that the law should be enforced if any disturbance to public peace occurred; otherwise, such restrictions may be unnecessary. 

“There are other barriers related to entertainment in the tourism industry, such as the Entertainment Tax. Hoteliers and stakeholders in the tourism sector must pay the tax even when they lack the space and opportunity to organise events as they wish,” he pointed out.  

As emphasised by THASL, the Entertainment Tax has long been a significant topic of discussion, often leaving governments in a dilemma regarding its potential abolition. According to the Entertainment Tax Ordinance (as amended), the tax may be imposed at varying rates for different amounts of admission fees. 

However, the rate applicable in any such cases shall not be less than 5% or more than 25% of the amount. 

Most recently, the Government led by former President Ranil Wickremesinghe attempted to bring about amendments or repeal the tax for the benefit of both the tourism and entertainment industries. Reports indicated that a Cabinet memorandum was to be presented to eliminate the tax on the directions of former President Wickremesinghe, specifically scrapping Entertainment Taxes on hotel events and open-air shows. 

Need for flexibility 

Meanwhile, another tourism expert, Sri Lanka Tourism Alliance Co-Chairperson Malik J. Fernando suggested that these specific laws and regulations related to entertainment and sound must be flexible in tourism zones, while ensuring the law was enforced without obstruction. 

Speaking to The Sunday Morning, Fernando noted that clearly identifying tourism zones was crucial for addressing these barriers without causing structural disputes. 

“These music venues contribute to the tourism sector by attracting numerous clients who enjoy socialising in Sri Lanka. However, the issue arises from the lack of late-night music on Fridays and Saturdays. In Sri Lanka, most places host events until late at night. To avoid such disputes, authorities need to designate tourism zones where late-night events are permissible.

“For example, in areas like Hiriketiya, people hold parties and events well into the night, and no one in that area is complaining. Therefore, such highly tourism-oriented areas must be identified, allowing for slightly different laws in those regions,” he added, emphasising that this approach would prevent conflicts between existing laws and public enjoyment. 

However, Fernando also provided a different perspective regarding the development of the tourism industry, highlighting the importance of marketing and positioning the country’s tourism sector to attract more affluent tourists. 

“Sri Lanka is not adequately marketed as a tourist destination. Too many people, particularly younger travellers, come for parties. We should aim for a broader range of visitors who spend more money. Currently, we attract many budget travellers who attend parties and drink, which is largely due to marketing and promotion. We need to diversify our tourist base,” he said. 

Addressing tourism industry potential 

In examining the insights from these tourism sector leaders, both highlighted the importance of relaxing existing laws and regulations and the need for a tourism-friendly legal framework concerning entertainment. 

They placed responsibility upon the relevant authorities to amend current laws while supporting an increase in tourism arrivals. However, it appears that the SLTDA, as the primary Government institution for the development of the tourism sector, has yet to adequately address the concerns raised by other stakeholders. 

When contacted by The Sunday Morning, SLTDA Deputy Director General Upali Ratnayake stated that no measures were currently underway to amend laws related to entertainment activities that impacted the tourism industry. Nonetheless, he noted that the SLTDA was aware of these issues, and while no official steps had been taken thus far to address them, actions would be pursued in the near future. 

It is clear that Sri Lanka needs to take significant steps to improve its tourism industry, particularly when it comes to music and entertainment. This sector has the potential to attract more tourists, especially younger visitors who enjoy vibrant nightlife and engaging cultural experiences. Relaxing the strict laws and regulations surrounding entertainment can create a more inviting atmosphere, encouraging tourists to stay longer and spend more. 

By establishing designated tourism zones, where entertainment can thrive without disrupting local communities, the country can enhance its appeal as a destination. Efforts from certain former governments to relax these regulations showed promise. Initiatives aimed at promoting nightlife and live music were steps in the right direction, but consistent action is needed to maintain momentum. 

The current Government should build on these efforts and continue to engage with industry stakeholders to create policies that support growth in the tourism sector. Further, collaboration between the Government and businesses can lead to a balanced approach that respects both tourists and local residents.