Sept. tourism earnings trail expectations despite record arrivals

Monday, 13 October 2025 00:24 - - {{hitsCtrl.values.hits}}

Sept. earnings at $ 182.9 m, down 42% from Aug.
YTD income up 5%, but earnings still 31.2% below 2018 level
Jan.-Sept. monthly average income $ 274 m, needs $ 840 m monthly for annual target
Needs over $ 2.52 b in Q4 to reach $ 5 b target

Despite welcoming a record number of visitors in September 2025, Sri Lanka’s tourism industry fell short of revenue expectations, reflecting persistent challenges in boosting tourist spending.

According to the latest data from the Central Bank of Sri Lanka (CBSL), September earnings rose marginally year-on-year (YoY) to $ 182.9 million, but fell sharply by 42% month-on-month, underscoring the gap between arrivals growth and actual economic returns.

The average daily spending per tourist remains around $ 171—lower than expected—and is a key factor preventing stronger revenue growth.

By comparison, September 2018 saw earnings of $ 279.8 million, highlighting that the industry still lags nearly $ 97 million behind pre-crisis highs.

Thus, the $ 400.66 million earned in January 2025 remains the highest monthly performance since 2020, buoyed by strong early-season demand.

During the first nine months, the tourism industry has generated over $ 2.47 billion, reflecting a 5% year-to-date (YTD) increase. However, the figure remains 31.2% below the 2018 benchmark of $ 3.25 billion for the same period, the year Sri Lanka recorded its highest-ever annual tourism revenue of $ 4.38 billion.

On average, during January-September 2025, around $ 274 million per month was generated from the tourism industry.

Despite the positive momentum, the sector faces an uphill battle to achieve its ambitious $ 5 billion year-end target and revised 2.6 million arrivals goal, following a mixed performance in the first nine months of the year. To reach that goal, the country will need to generate over $ 2.52 billion in the final quarter alone, a target analysts describe as “challenging but not impossible,” given the current pace of demand.

To meet the $ 5 billion target, Sri Lanka must now average over $ 840 million in monthly earnings over the next three months, almost double the current average. It underscores the scale of the challenge as the country looks to reclaim its position among the region’s top-performing tourist destinations.