Thursday Aug 28, 2025
Thursday Aug 28, 2025
Thursday, 28 August 2025 03:56 - - {{hitsCtrl.values.hits}}
President Anura Kumara Disanayake
By Charumini de Silva
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath yesterday said that one year after President Anura Kumara Disanayake assumed office, Sri Lanka’s economy is on a steady path of recovery, supported by sound macroeconomic fundamentals and targeted reforms.
Addressing the post-Cabinet meeting media briefing, Herath pointed to key indicators showing resilience.
“Workers’ remittances during the first half of 2025 have surged past $ 3.7 billion, while tourism earnings in the same period topped $ 1.7 billion. Exports, despite global trade headwinds, have grown to nearly $ 10 billion in the first seven months,” he said, responding to journalists.
On trade policy, he said Sri Lanka will continue to maintain a 20% US reciprocal tariff and offset potential challenges through zero-tariff access for apparel exports to the UK starting next year.
Commenting on US President Donald Trump’s newly announced digital tax and the threat of “subsequent additional tariffs,” Herath said it was premature to respond, noting the decision was made public only on Tuesday.
Turning to investments, Herath highlighted a marked improvement in sentiment, with over $ 500 million in Foreign Direct Investment (FDI) registered in recent months, a sharp rise from last year. “The economy is progressing strongly,” he said.
Tourism continues to play a central role, with arrivals reaching 1.53 million by 24 August, on track towards the Government’s target of 3 million visitors in 2025. Acknowledging a dip in tourism earnings, Herath noted that Sri Lanka’s top source markets, including India, the UK, Russia, Germany, France, Italy, the US, and China, are high-spending travellers. “Going forward, our focus will be on quality rather than quantity, with several initiatives planned to support this,” he said.
Herath also outlined the impact of casinos on the tourism economy. With the Gambling Regulatory Authority now coming into operation, previously unaccounted-for casino revenues will be formally captured as part of tourism income. “This will significantly boost reported tourism earnings,” he noted.
Responding to concerns raised by the Advocata Institute that the new Regulatory Authority may fall short of its intended outcomes, Herath said this is the first time Sri Lanka has introduced such a mechanism. “Let’s see how it functions. If amendments are necessary, the Government is open to making them,” he assured.
