Monday Jan 12, 2026
Monday Jan 12, 2026
Monday, 12 January 2026 03:43 - - {{hitsCtrl.values.hits}}
Sri Lanka’s tourism sector posted a modest financial recovery in 2025, generating just over $ 3.2 billion in revenue, as slower growth in earnings exposed a widening gap between rising visitor numbers and tourist spending.
Despite highest-ever arrivals of over 2.36 million, tourism income increased by only 1.6% year-on-year (YoY), reflecting the impact of a downward revision in average per-day spending and intensifying concerns over the quality and value of tourism growth.
According to data released by the Central Bank of Sri Lanka (CBSL), tourism earnings declined 14.8% YoY to $ 308.6 million in December, even as arrivals rose 4.2% to 258,928 visitors.
The December performance marked the fourth revenue contraction within six months, highlighting sustained pressure on foreign exchange inflows from the sector despite continued recovery in visitor volumes.
Revenue had already fallen 3% in July to $ 318.5 million and 8.2% in August to $ 258.9 million compared to the same months a year earlier, before showing only marginal improvements in the subsequent two months.
Officials said tourism revenue has consistently underperformed relative to arrivals since August 2025, after the Sri Lanka Tourism Development Authority (SLTDA) revised daily per-tourist spending down to $ 148 from $ 171, based on a new survey. As a result, higher visitor volumes have not translated into proportionate income growth.
Tourist arrivals increased 15.1% YoY to 2,362,521 visitors, up from 2,053,465 in 2024, reflecting a strong recovery in volumes, but weaker yield per tourist.
Contrary to expectations, December arrivals increased despite severe impact from Cyclone Ditwah in the central districts of Kandy and Nuwara Eliya, indicating resilience in demand even amid local disruptions.
In comparison, tourism earnings in 2024 stood at $ 3.17 billion, marking a 53.2% jump from $ 2.07 billion in 2023, driven largely by the post-crisis reopening and recovery of the sector.
Tourism, which accounted for nearly 5% of Sri Lanka’s GDP at its peak in 2018, now contributes around 3% of the economy, after suffering successive shocks from the 2019 Easter Sunday attacks, the COVID-19 pandemic, and the 2022 economic crisis.
Tourism earnings, estimated through the SLTDA surveys, have played a role in supporting domestic demand, with increased sector incomes contributing to higher imports and a gradual widening of the merchandise trade deficit as economic activity normalises.
Sri Lanka Tourism has set ambitious goals for 2026, aiming to attract 3 million visitors and generate $ 5 billion in revenue. The long-term vision targets 5 million arrivals and $ 8 billion in earnings by 2030.
