Monday Jun 22, 2026
Monday Jun 22, 2026
Monday, 22 June 2026 00:23 - - {{hitsCtrl.values.hits}}
Sri Lanka’s foreign exchange earnings from tourism declined in May despite recording its highest-ever monthly increase in visitor arrivals, highlighting persistent pressure to convert rising tourist numbers into stronger revenue growth.
According to the Central Bank of Sri Lanka (CBSL), tourism earnings fell 5.13% year-on-year (YoY) to $ 155.7 million in May 2026 from $ 164.1 million a year earlier. Revenue also declined marginally from $ 157.1 million recorded in April.
The weaker earnings performance in May came despite tourist arrivals surging 10% YoY to a record 145,745 visitors, raising fresh questions over declining per-capita spending and the quality of tourism growth.
The monthly decline also reflected negatively on the broader trend. Tourism earnings for the first five months of 2026 fell by 12% YoY to $ 1.36 billion, reflecting the sector’s continued struggle and low contribution to foreign exchange reserves.
The latest figures indicate that average earnings per visitor continue to remain under pressure, with analysts warning that headline growth in arrivals alone will not be sufficient to materially improve foreign exchange inflows if spending levels remain subdued.
The softer performance follows a major revision in tourism revenue calculations introduced last year. The Sri Lanka Tourism Development Authority (SLTDA) reduced its estimate of average daily tourist expenditure from $ 172 to $ 148 after conducting a fresh survey, resulting in lower reported earnings despite improving arrival numbers.
Tourism Minister Vijitha Herath recently defended the revised figures in Parliament, insisting that tourism receipts have not actually declined, but are now being measured more accurately using internationally accepted scientific survey methodologies (https://www.ft.lk/front-page/Tourism-revenue-figures-now-more-accurate-not-lower-Minister/44-793105).
However, industry leaders questioned whether the arrival statistics accurately reflect actual tourism activity and revenue generation.
Analysts also opined that the industry will need to improve visitor spending and length of stay through value-added tourism offerings if it is to maximise its contribution to the economy and external sector.
The May data also highlight the challenge facing the industry as it seeks to rebuild after years of successive shocks, including the 2019 Easter Sunday attacks, the COVID-19 pandemic, and the 2022 economic crisis.
In 2025, the sector generated $ 3.22 billion in earnings, only 1.6% higher than the $ 3.17 billion recorded in 2024, despite arrivals increasing by more than 15% to 2.36 million visitors.
That mismatch between visitor growth and revenue growth has intensified calls for Sri Lanka to focus on attracting higher-spending travellers rather than relying solely on volume-driven expansion.
The Government has set ambitious targets of attracting 3 million tourists and generating $ 4 billion in tourism earnings in 2026, with a global promotional campaign expected to be launched later this month.
