Some Israeli tourists in Sri Lanka have been linked to narcotics peddling and unlicensed business operations in the country’s Eastern Province, according to a report published in the Daily Mirror. These activities, said to be centered in tourist hotspots such as Arugambay, Ulla, Komari, and Panama in the Potuvil division of the Ampara district, have sparked serious concerns among tourism authorities and law enforcement officials.
A senior source familiar with the tourism sector told the Daily Mirror that certain foreign nationals, including Israelis, are running unauthorized nightclubs and guest houses through local proxies to skirt legal requirements. “These establishments operate under the names of Sri Lankan partners to bypass immigration and business laws,” the source revealed.
Authorities allege that narcotics are being trafficked at these venues, often marketed through closed social media groups like WhatsApp and Facebook, creating covert and hard-to-trace networks. The income generated from these illegal operations is reportedly sent abroad through informal money transfer methods such as Undiyal, depriving the country of valuable tourism revenue.
“This form of parallel tourism not only violates immigration and revenue laws but also endangers public safety and undermines ethical tourism,” the source warned.
Similar patterns have been reported in other tourist-heavy areas such as Weligama and Unawatuna, where foreign nationals are allegedly involved in illegal business activities — from operating unauthorized guest houses to running taxi services.
The reports have triggered calls for urgent legal reforms. The source emphasized the need to update Sri Lanka’s immigration framework, primarily governed by the Immigrants and Emigrants Act, to close loopholes being exploited by foreign nationals.
Adding to the growing complexity, Parliament was recently informed that Israeli nationals are also operating three Chabad Houses — Jewish religious centers — in Colombo, Weligama, and Ella. Since Sri Lankan law only recognizes Buddhism, Islam, Hinduism, and Christianity in its regulation of religious sites, the Ministry of Buddhasasana, Religious and Cultural Affairs is unable to monitor or regulate these institutions under existing legal provisions.
Tourism officials and security agencies are now urging a coordinated crackdown on these unauthorized operations while calling for enhanced oversight mechanisms to ensure lawful and sustainable tourism development.
