Tourism earnings rise 10% YoY to $ 1.7 b in 1H

Monday, 7 July 2025 06:09 - - {{hitsCtrl.values.hits}}

June tourism revenue grows 12% YoY to $ 169.5 m, but still second lowest this year
1H tourism earnings 22% below 2018 levels, 10% below 2019
Needs over $ 3.28 b in 2H of 2025 to reach $ 5 b target
Average monthly income so far is $ 285.4 m; 2H needs $ 547.9 m per month—almost double the current pace
Average daily spending per tourist is about $ 163, assuming nine-night stay
Industry stakeholders question greater progress without stronger promotions; opines missed targets in 1H highlight need for radical correction

Sri Lanka’s tourism industry has posted a moderate rebound in the first half of 2025, with earnings rising 10% year-on-year (YoY) to over $ 1.71 billion, according to the latest data released by the Central Bank.

Given the ambitious targets by year-end, the sector faces an uphill battle to meet $ 5 billion in earnings and 3 million arrivals after a mixed performance in the first half of 2025.

In June, tourism earnings stood at $ 169.5 million, reflecting a 12% YoY increase. However, it was still the second lowest income so far this year, ahead of only May’s $ 164.13 million. Despite this, June 2025 recorded the highest monthly revenue since 2018.

The $ 400.66 million generated in January 2025 is the highest monthly earnings registered since 2020 thus far, whilst the industry’s peak June earnings remain at $ 275.6 million recorded in 2018.

Despite the positive annual uptick, tourism revenue from January to June in 2025 still fell 22% below the benchmark year 2018’s over $ 2.18 billion for the same period and lagged behind 2019’s over $ 1.9 billion by nearly 10%.

To achieve the $ 5 billion year-end target, Sri Lanka now needs to secure over $ 3.28 billion in the remaining six months of 2025.

During the first half of this year, the industry managed to generate an average monthly income of about $ 285.4 million, whilst the average daily spending was about $ 163 per tourist, assuming a nine-night average stay.

Sri Lanka would need to average around $ 547.9 million per month in the second half to hit its ambitious $ 5 billion target—nearly double its current average.

Against this massive growth projection, industry stakeholders are raising questions about feasibility, especially in the absence of a robust promotional campaign beyond limited target markets amidst global geopolitical headwinds.

With Sri Lanka failing to meet its monthly targets in the first half of 2025, it extends a worrying trend of missed opportunities in both arrivals and revenue.

In June, Sri Lanka welcomed 138,241 visitors, a 22% YoY increase from 2024—but fell short of its target of 177,257 tourists by nearly 39,000.

However, with over 1.16 million visitors so far, the country will need to attract over 1.83 million tourists in the next six months, meaning a steep 61% of the annual target still remains to be achieved. This also translates to a requirement of around 305,000 tourists per month for the remainder of the year, nearly triple the current monthly average of 195,000.

Industry analysts said as income, arrivals, and promotional efforts all fall short of the required pace, the sector may need a radical course of correction if it hopes to transform this tentative recovery into the robust growth envisioned by policymakers.

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