Colombo, August 4, 2025
Sri Lanka’s tourism sector has demonstrated a commendable recovery in the first half of 2025, generating approximately USD 3.7 billion in foreign exchange earnings. This performance reflects a resurgence in international travel to the island nation, supported by government initiatives and renewed traveler confidence following a period of global and domestic challenges.
During the period from January to June 2025, tourism revenue amounted to approximately USD 1.71 billion, representing a 10 percent increase compared to USD 1.56 billion recorded in the corresponding period of 2024. The month of June alone contributed USD 169.5 million, marking a 12.1 percent increase over June 2024. These figures underscore sustained growth in visitor arrivals and tourism-related activities.
The total number of tourist arrivals for the first six months was approximately 1.17 million, indicating a 15.6 percent year-on-year increase. The principal source markets continue to be India, the United Kingdom, China, Germany, and Russia. Notably, the government’s decision to expand visa-free access, particularly for Indian nationals, has been instrumental in facilitating increased tourist inflows and enhancing economic benefits.
The Sri Lankan government has set ambitious objectives for 2025, targeting 3 million tourist arrivals and USD 5 billion in tourism revenue. Tourism remains one of the country’s foremost sources of foreign exchange, second only to remittances and the apparel sector. The sector’s contribution extends beyond direct revenue, generating significant economic multipliers through hospitality, transportation, local crafts, and small businesses.
Despite these positive developments, the tourism sector faces certain challenges. An oversupply of accommodation has exerted downward pressure on hotel occupancy rates and room tariffs, even during peak seasons. Furthermore, average expenditure per tourist has shown signs of moderation, influenced by a rise in budget-conscious travelers, resulting in lower average daily receipts compared to previous years.
Nevertheless, policymakers and industry stakeholders remain optimistic regarding the sector’s prospects. Ongoing strategic marketing efforts, infrastructure enhancements, and policy support are expected to bridge current gaps and enable Sri Lanka to achieve or surpass its USD 5 billion revenue target by the end of 2025. The continued revitalization of the tourism industry is poised to play a pivotal role in national economic recovery and employment generation.
