Tourism industry downplays impact of Indian outbound travel limitations

Indian tourists visiting the Gangaramaya Temple in Colombo

• Says no significant cancellations, booking slowdown so far
• Destination weddings to remain resilient as affluent families plan around auspicious dates
• Sees opportunity for SL to benefit as Indians seek alternatives amid Gulf geopolitical tensions
• Highlights presence of Indian hotel chains and strong cultural links as added advantages

By Charumini de Silva

Sri Lanka’s tourism industry has played down concerns over recent remarks by Indian Prime Minister Narendra Modi urging citizens to avoid non-essential overseas travel and destination weddings abroad over the coming year, insisting the move is unlikely to significantly affect arrivals from its largest source market.

Industry leaders said 

Sri Lanka remains competitively positioned for Indian travellers due to its proximity, affordability, and strong air connectivity, despite concerns that any shift in outbound sentiment in India could have ripple effects across regional tourism markets.

“Sri Lanka is not among India’s top outbound travel destinations, thus limiting the likelihood of a major direct impact,” The Hotels Association of Sri Lanka (THASL) President Asoka Hettigoda told the Daily FT.

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He pointed out that Sri Lanka remains more cost-effective for many Indian travellers than domestic travel within India, pointing out that airfares on certain domestic Indian routes can exceed the cost of flying to Colombo.

“Flying from Chennai to Mumbai will cost more than flying to Colombo,” he added.

Hettigoda said the hotel sector has so far not experienced any Indian cancellations or noticeable drop in bookings, particularly as the current period coincides with India’s school holiday season, when many families would have already finalised travel plans.

India continues to dominate as Sri Lanka’s largest tourism source market. In 2025, over 531,000 Indian tourists visited the island nation, while in the first 10 days of May 2026 alone, Indian travellers accounted for 18,533 arrivals, representing 40% of total visitors during the period. On a year-to-date basis, India has contributed 208,445 tourists, or roughly 23% of Sri Lanka’s total arrivals so far this year.

On destination weddings, he noted that affluent Indian families often plan ceremonies around culturally significant and astrologically auspicious dates, suggesting such travel decisions are less likely to be influenced by short-term political messaging. 

However, he acknowledged Premier Modi’s influence among Indian citizens and said the industry would continue monitoring booking trends in the coming months.

“With Dubai now considered a good option for Indians amid geopolitical tensions in the Gulf region, Sri Lanka definitely stands to gain, given its proximity, affordability, and having multiple Indian hotel chains and cultural connections,” he explained.

Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nalin Jayasundera said it was still too early to assess the full implications, as they plan to engage directly with Indian travel partners in the coming days.

He said around 75 Indian tour operators were expected to participate in their flagship Sancharaka Udawa tourism event today (15) in Colombo, where business-to-business (B2B) discussions are scheduled, offering an opportunity to gauge market sentiment and future travel trends.

“This will not only impact us but them too, as they will be out of business,” Jayasundera added.