Monday Nov 17, 2025
Monday Nov 17, 2025
Monday, 17 November 2025 00:24 - - {{hitsCtrl.values.hits}}
Earnings from tourism remained well below expectations despite welcoming a record number of visitors in October 2025, underscoring the sector’s struggle to convert rising arrivals into meaningful economic gains.
According to the latest data from the Central Bank of Sri Lanka (CBSL), earnings in October inched up by just 0.3% year-on-year (YoY) to $ 186.1 million, revealing a widening disconnect between visitor growth and actual spending.
Despite the record surge in arrivals, October’s revenue still trails far behind pre-crisis performance levels. In October 2018, Sri Lanka earned $ 287.4 million from tourism, $ 101.3 million more than the latest figure.
Sri Lanka recorded its highest-ever tourist arrivals for the month of October this year, welcoming 165,193 visitors, a 22% YoY growth and surpassing the previous record of 153,123 in October 2018.
Although earnings dipped in July and August before recovering slightly in September, the pattern reflects persistent volatility. July revenue fell 3% to $ 318.5 million compared to the previous year’s $ 328.3 million, while August earnings dropped 8.2% to $ 258.9 million. September brought only a modest 1% rise to $ 182.9 million.
Industry analysts highlight that average daily tourist spending, which remains around $ 171, is significantly below expectations and continues to dampen overall revenue growth. The strongest monthly performance this year came in January, when earnings reached $ 400.66 million, buoyed by early-season demand, still the highest since 2020.
For the first 10 months of 2025, the tourism sector generated over $ 2.65 billion, a 4.9% YoY increase. However, the figure remains 33% lower than the $ 3.53 billion earned during the same period in 2018, when the country recorded its highest-ever annual tourism revenue of $ 4.38 billion.
On average, the industry has generated about $ 265.9 million per month so far this year.
With only two months left, Sri Lanka faces a massive challenge in meeting its ambitious year-end targets of $ 5 billion in revenue and 2.6 million tourist arrivals.
To reach the revenue goal alone, the country would need to earn more than $ 2.34 billion in November and December, an average of over $ 1 billion per month, nearly four times the current monthly performance.
Analysts caution that achieving such momentum at the current pace of demand appears “unlikely.”
Under the 2026 Budget, the Government has now revised its long-term tourism revenue goal to $ 8 billion by 2030, down from the earlier projection of $ 10 billion, reflecting the need for more realistic growth expectations amidst a slow recovery in tourist spending.
