Are holiday package costs controlled by Sri Lankan authorities?

In Sri Lanka, holiday package costs are not held to a government ceiling. Instead, it works on a free-market setup, where travel agencies set their own numbers, depending on the service mix, accommodation level, and when the season swings high or low.

The Sri Lanka Tourism Development Authority (SLTDA) does keep a firm grip on licensing and safety requirements, but it does not fix or cap the package prices. Still, the authorities sometimes step in with minimum room rates for hotels in Colombo city, mainly to stop aggressive price wars. After that point, operators usually get full freedom to design their pricing in a competitive way.