Do Sri Lankan tour operators offer bankruptcy protection?

Only a tiny share of top Sri Lankan tour operators really provide formal financial bankruptcy protection or bonded guarantees; more often than not, it is the ones tied to international travel associations like ABTA or ASTA. Regular local agencies typically do not keep trust accounts meant to protect your deposit if the business suddenly stops, and that is the usual pattern.

To protect your financial outlay, it is strongly advised that you pay your first deposit with a major credit card instead of doing a direct bank wire, since credit cards give you chargeback protection. Also, getting solid independent travel insurance that includes cover for supplier default will help shield your money from agency insolvency.