How local entrepreneurs are promoting sustainable tourism in Sri Lanka

In Sri Lanka, sustainable tourism is proving that protecting nature and improving livelihoods can go hand in hand. Through the National Sustainable Tourism Certification, more than 200 small tourism entrepreneurs, many of them homestay and hotel owners, are adopting environmentally friendly practices while increasing their incomes and strengthening local communities.

The United Nations Development Programme (UNDP), through its Biodiversity Finance Initiative (BIOFIN), has certified 200 small and medium enterprises (SMEs) under Sri Lanka’s National Sustainable Tourism Certification (NSTC) scheme. Aligned with Global Sustainable Tourism Council (GSTC) standards, the certification goes beyond a symbolic label—it supports businesses in embedding sustainability into their daily operations while strengthening Sri Lanka’s tourism sector.

The certification criteria focus on the sustainable use of biodiversity, the reduction of environmental threats, and the adoption of environmentally friendly practices. These efforts are delivering measurable results not only for nature, but also for livelihoods. Certified businesses report income increases of 15–20 per cent, driven in part by improved visibility and recognition on international travel platforms such as Booking.com, where sustainability credentials increasingly influence travellers’ choices.

Since 2018, BIOFIN has worked closely with the Sri Lanka Tourism Development Authority (SLTDA) to expand the NSTC from accommodation providers to tourism destinations and, more recently, to SMEs, with a strong emphasis on women entrepreneurs. In 2023, the programme entered a new phase, supporting local businesses to meet global sustainability standards and access new market opportunities in a tourism sector that is becoming steadily more sustainability-conscious.

The first group of SME tourism service providers received their NSTC certificates in May 2024. One year later, BIOFIN returned to the field to understand what certification meant in practice. What emerged were not just examples of compliance with sustainability standards, but human stories of entrepreneurs, families, and communities whose businesses have been reshaped by sustainable tourism.

Mango Villas, Arugam Bay: A Village Homestay Becomes a Sustainability Star

"The foreigners just adore the concept of my homestay. They are fascinated when they see the sustainability certificate displayed in the property. It’s not something they expect to see in a village setting, and that surprise turns into appreciation," said Ms N. B. Shama Geethika, Proprietor - Mango Villas Arugambay Panama.

Photo: Ms. N. B. Shama Geethika, Proprietor of Mango Villas Arugambay Panama, holds the Sustainable Tourism Certificate

But that surprise has become the homestay’s strongest asset. Reservations have continued to increase since being certified, with the hotel now enjoying consistent visitor traffic, even during what was previously the off-peak season. The secret of this success has been seen as the mix of authentic experiences and explicit commitment to sustainability.   

Plastic has been eliminated in operations. From replacing plastic dustbins with biodegradable dustbins to encouraging visitors to reduce waste, the eco-friendly initiatives the homestay has become a strong talking point. The improvements are not just behind the scenes; visitors see and experience them and often share their admiration.   

Photo: Zero plastic concept in Mango Villas, Arugam Bay, Sri Lanka

The homestay’s now-famous village lunch, made from lesser-known local ingredients, has become a cultural highlight for guests. Two air-conditioned rooms offer comfort, while hands-on cookery classes introduce visitors to Sri Lanka’s rich agro-biodiversity. For those eager to take a bit of Sri Lanka back home, the host offers engaging cookery classes, allowing visitors to learn local recipes in a hands-on highlighting the vivid agro biodiversity Sri Lanka is famous for in an intimate setting.   

“It’s not a stay—it’s an experience,” Shama says. And with sustainable tourism now embedded into her business, that experience is flourishing.

Photo: Tourists are preparing local food at a picnic at Mango Villa

Sri Lanka Travel Secrets: How One Woman Turned Persistence into Purpose

“The first time I applied, I didn’t get it. But I didn’t give up.”

For Dinali Lokugamage, founder of Sri Lanka Travel Secrets, sustainability was never a marketing strategy; it was a personal conviction.

Her certification path wasn’t easy.

“The first time I applied for the Sustainable Tourism Certification, I didn’t get it,” she recalls. “But I didn’t give up. The second time, I got through, and that changed everything.”

Certification opened doors to global opportunities, including a three-year partnership with the International Promotion Desk (IPD) in Germany, an achievement that can transform the future of any tour operator in the region.

Unlike many operators, Dinali spends little on advertising. “My clients promote me through their reviews,” she says with pride. Her business grows through trust, authenticity, and genuine care.

From going paperless to eliminating printed itineraries, from encouraging reusable water bottles to selecting meaningful, locally made farewell gifts, sustainability is woven into every part of her business model.

Dinali partners exclusively with small, local brands and SMEs, ensuring tourism revenue stays within communities.

Photo: Supporting local artisans ensures that tourism revenue stays within communities and

She also advocates for ethical wildlife tourism. “I never promote animal cruelty. I work only with safari jeep drivers who truly respect animals and nature.”

Her commitment extends beyond tourism. Through a dedicated CSR fund, she supports single mothers to begin saving and recently hosted a US$1,000 meditation retreat aimed at empowering women.

Her story is proof that sustainable tourism is not just good for business, it’s good for society.

Leisure Living Homestay, Wewaldeniya: Hospitality Powered by the Sun

“It really resonates with our European clients.”

At Leisure Living Homestay, the first thing guests notice is not the view or the rooms, it’s the Sustainable Tourism Certification proudly displayed at the entrance.

“We use it for promotional purposes,” says Tharanga Dinesh Leelaratne, proprietor. “It really resonates with our European clients; they value what it stands for.”

And what it stands for is impressive.

Photo: The Sustainable Tourism Certification is proudly displayed at the entrance of Leisure Living Homestay, Sri Lanka

The homestay has made impressive strides in minimising its environmental footprint. Plastic bottles have been eliminated, with refillable water stations provided for guests. About 80% of the property is powered by solar energy, significantly reducing reliance on the grid and fossil fuels. In addition, LED lighting and inverter air conditioners have been installed throughout the homestay, ensuring energy efficiency without compromising on guest comfort.   

Sustainability also extends to waste management. All garbage is carefully sorted and disposed of responsibly, reducing the strain on local systems and encouraging a culture of mindfulness. Even in daily operations, Tharanga ensures that the economic benefits of tourism are felt locally, raw materials are sourced directly from the village, supporting nearby farmers and small-scale producers.   

With a clear commitment to the planet and the people around them, Tharanga and his team are helping redefine hospitality, one solar-powered, plastic-free, community-centred step at a time

A Movement That’s Just Beginning

The stories of Shama, Dinali, and Tharanga show how sustainability certification can do far more than improve business practices. It can transform lives, empower women, uplift rural communities, and protect Sri Lanka’s natural heritage.

The NSTC, supported by BIOFIN and aligned with global standards, is planting the seeds of a new kind of tourism—one where small business leads the way, guests seek meaning over luxury, and sustainability becomes the sign of Sri Lankan hospitality.

As more SMEs join the movement, Sri Lanka’s tourism sector is reimagining itself for a future where travel gives back more than it takes.