The history of the tourism industry of Sri Lanka is a comparatively short one considering the long and illustrious history of a country which could boast of a culture and tradition which surpassed many other greater nations of the world. Before and after independence Sri Lanka was largely a stop over port for travellers from West to East who spent one or two days in the City of Colombo. No government gave serious thought to the development of the industry as an economically viable venture until the United National Party came to power in 1965 and the subject of tourism came under the purview of the Minister of State Hon. J. R. Jayewardene.

The new Minister Jayewardene saw tourism in a new dimension as a great industry capable of earning foreign exchange, providing avenues of mass employment, creating a manpower which commanded a high, employment potential in the world. He was determined to place this industry on a solid foundation providing it a ' conceptional base and institutional support.' This was necessary to bring dynamism and cohesiveness into an industry, shunned by leaders in the past, ignored by investors who were inhibited by the lack of incentive to invest in projects which were uncertain of a satisfactory return. The new Minister Hon. J. R. Jayewardene considered it essential for the government to give that assurance and with this objective in view he tabled the Ceylon Tourist Board Act No 10 of 1966 followed by Ceylon Hotels Corporation Act No 14 of 1966.

The Tourist Board Act gave a new dimension to the tourist trade. The Act conferred on the Board the powers for the establishment, maintenance and operation of 'adequate, efficient and attractive tourist services and to make those services available to others engaged in the tourist trade'. It could extend financial assistance to any local authority, corporate body or other person in their effort to develop the trade. Tourist Development Act of 1968 provided authority to vest crown land in the Tourist Board. Hikkaduwa Beach Hotel and Bentota Beach Hotel were nationalised.

The establishment of the Hotels Corporation was intended to overcome the problem of accommodation. Its objective was to operate in areas where private investor was not inclined to build. The lack of trained manpower was overcome by the establishment of the Hotel School.

A new vista was developed in regard to tourism as Minister Jayewardene saw the tourist from a different perspective.

This was the beginning of a new industry ignored by the previous governments but given a new life by Minister J. R. Jayewardene. As a result today tourist resorts exist in almost all cities and today an annual turnover of over 500,000 tourists are enjoying the tropical climes and beautiful beaches of Sri Lanka not to mention the enormous amount of foreign exchange they bring into the country.