Colombo, August 3, 2025 — Authorities in Sri Lanka are facing mounting calls to address the rising presence of foreign nationals conducting business activities in Arugam Bay, the popular eastern coastal town known for its surfing beaches and growing tourism sector.
Local residents and community leaders have expressed concern that some foreign-run establishments are operating without proper authorization, with reports indicating a number of businesses managed by Israeli nationals. These enterprises, ranging from guesthouses to eateries and surf-related services, have drawn attention due to the use of Hebrew signage and the predominance of foreign clientele, sparking debates over the impact on local culture and economic opportunities.
Several locals say that the increasing number of foreign-operated businesses, which appear to bypass visa and employment regulations, threatens to marginalize the local workforce and alter the socio-economic fabric of the region. Complaints include the hiring of foreign staff under tourist visas and limited engagement with the local community.
The Sri Lankan government, responding to these concerns, has stated that no official permissions have been granted for foreign nationals to establish businesses or places of worship in Arugam Bay. Prime Minister Harini Amarasuriya emphasized the government’s commitment to enforcing immigration and business laws, vowing to take appropriate measures to curb unauthorized commercial activities.
Local law enforcement has reportedly initiated investigations, with police tasked to monitor business operations closely and ensure compliance with relevant regulations. Additionally, hotel owners in the area are being urged to provide transparent records on the nationalities of their guests and employees.
Tourism experts acknowledge that while foreign investment is a vital contributor to Sri Lanka’s economy, it must be balanced with safeguarding local culture, legal frameworks, and employment rights. The situation in Arugam Bay is seen by many as a microcosm of the broader challenges Sri Lanka faces in managing rapid tourism growth alongside sustainable development.
As authorities continue to assess the situation, calls for clear and enforceable policies governing foreign business activities in tourist hotspots like Arugam Bay are intensifying, aiming to ensure that economic benefits are shared equitably without compromising local traditions and regulations.
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