On 17 July, the Pottuvil Divisional Development Committee (DDC)) decided to shut down Arugam Bay Chabad House, citing the absence of any legal approval for its functioning. The centre, a Jewish community space, had reportedly been operating without proper authorisation.

In separate development, the Sectoral Oversight Committee on Economic Development and International Relations has questioned the policy of the Ministry of Foreign Affairs, Foreign Employment, and Tourism regarding the establishment and operation of Chabad Houses in Sri Lanka, amid growing concerns over domestic security.

The matter was taken up during a recent committee meeting chaired by Member of Parliament and Attorney-at-Law Lakmali Hemachandra.

Responding to the committee’s inquiries, officials from the Ministry stated that out of the five Chabad Houses currently operating in Sri Lanka, only two have been registered under the Companies Act.

The committee also raised concerns about the apparent regulatory gaps in monitoring these institutions, particularly in sensitive areas.

When questioned on the economic aspect, Ministry officials noted that although general tourist spending can be estimated, there is no system in place to evaluate spending patterns based on nationality. However, they pointed out that the average Israeli tourist spends approximately USD 150, which is comparatively high.