Sri Lanka could retain the 20 to 25 percent commission currently paid to global online travel agencies (OTAs) on tens of thousands of unregistered rooms by bringing the country’s largely informal tourism sector onto an artificial intelligence-based platform, Deputy Minister of Tourism Prof. Ruwan Ranasinghe has said.
Speaking at the national celebration of World Tourism Day 2026, hosted by the Sri Lanka Tourism Development Authority (SLTDA) at Taj Samudra, Colombo, on Friday (25), Prof. Ranasinghe said the event’s theme, ‘Digital Agenda and Artificial Intelligence to Redesign Tourism’, highlighted the growing importance of technology in strengthening the tourism sector.
The Deputy Minister noted that a significant portion of Sri Lanka’s tourism industry continues to operate informally and remains outside the direct regulatory framework. He suggested that integrating these businesses and accommodation providers into an AI-based platform could help create a more regulated and effectively governed tourism sector.
“We can have a more regulated and even governed tourism sector if we absorb that into an AI platform. I think it is an investment that we need to work on,” he said, adding that using AI to take the tourism industry to the next level should become part of the SLTDA’s agenda.
Prof. Ranasinghe also highlighted the potential financial benefits of reducing the commissions paid to international OTAs for bookings involving rooms that are not registered with the tourism authorities. According to figures cited by him, between US$20 and US$25 out of every US$100 in room revenue booked through such channels is paid outside the country as commission.
“If we can bring these onto that platform, we can save that money within our country in its entirety,” he noted.
The Deputy Minister suggested that the potential benefits of digitalisation could extend beyond retaining OTA commissions and also influence how accommodation providers approach pricing.
Referring to an example presented during the keynote address by Dr. Subasinghe on the use of AI in hospitality, he pointed to an average daily rate (ADR) of around US$225 used as the starting point for a negotiated rate. By comparison, Colombo’s ADR currently stands at approximately US$100 to US$125, according to the figures cited during the event.
Prof. Ranasinghe observed that the international benchmark was therefore around 80 to 125 percent higher than the Colombo range. He suggested that AI-powered negotiation and pricing tools could potentially help hotels narrow this gap during the high season.
He also pointed to the government’s decision to establish a dedicated ministry for the digital economy as an indication of the importance placed on digitalisation in areas including efficiency, regulation, legislation and governance.
According to the Deputy Minister, the SLTDA and the Sri Lanka Tourism Promotion Bureau have already launched a digital promotion campaign, which could operate alongside the proposed technology-driven platform.
At the same time, Prof. Ranasinghe stressed that the digital transformation of tourism should extend to communities directly involved in tourism activities. He noted that several parallel programmes were being conducted alongside the national World Tourism Day celebration, including initiatives focused on school students.
The event also featured the Tourism Start-Up Competition 2026, held under the theme ‘AI-Driven Innovation for the Future of Tourism’. The competition attracted 52 applications across its Tertiary Level and Commercial Level categories.
According to the SLTDA, 25 entries were shortlisted to present their ideas before an expert panel. Six winners were selected from each category, meaning fewer than one in four applicants ultimately received an award.
The discussions and initiatives highlighted during World Tourism Day 2026 reflected the growing focus on artificial intelligence and digital technologies as tools for improving tourism regulation, pricing, promotion, business efficiency and value retention within Sri Lanka’s tourism economy.
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