Sri Lanka February tourism revenue down 4.3 pct, according to official data, even as the island nation recorded a surge in tourist arrivals during the same month, highlighting shifts in visitor spending patterns.
Sri Lanka February tourism revenue down 4.3 pct despite record tourist arrivals
Data released by the Central Bank of Sri Lanka, quoting statistics from the Sri Lanka Tourism Development Authority, showed that the country earned approximately 352 million US dollars from tourism in February 2026. This represented a 4.3 percent decline compared with the same month a year earlier.
The drop in revenue came despite a sharp increase in tourist arrivals, underscoring a trend that has emerged over the past several months where higher visitor numbers have not translated into proportional growth in foreign exchange earnings.
Officials have previously explained that tourism earnings estimates were revised after updated surveys indicated that the average daily spending per tourist had declined. Since August last year, the official estimate of per-day tourist spending was adjusted to 148 US dollars, down from an earlier estimate of 171 US dollars.
The revision has affected monthly tourism revenue calculations even as the industry continues to see a recovery in visitor arrivals following several years of disruptions.
February marked the sixth decline in monthly tourism revenue over the past eight months. Earnings had previously fallen in July and August before showing a modest recovery in the following two months. However, the recent decline suggests that revenue growth has not kept pace with the steady rebound in visitor numbers.
Tourism remains one of Sri Lanka’s most important sources of foreign exchange and economic activity. The sector currently accounts for nearly three percent of the country’s economy, though its contribution was significantly higher before a series of crises disrupted the industry.
The latest data showed that Sri Lanka welcomed 279,328 tourists in February 2026, representing a 16.3 percent increase compared with the same month a year earlier. The figure marks the highest monthly arrival total recorded by the country, reflecting strong global travel demand and continued marketing efforts to revive the industry.
However, the development where Sri Lanka February tourism revenue down 4.3 pct indicates that higher arrivals alone are not sufficient to drive stronger earnings without corresponding growth in visitor spending.
Tourism authorities and policymakers have been focusing on strategies to attract higher-spending visitors and diversify tourism offerings in order to increase revenue per tourist. Efforts include promoting luxury tourism, wellness travel, eco-tourism, and niche experiences that encourage longer stays and higher daily spending.
Sri Lanka has set an ambitious target of attracting three million tourists in 2026 as part of a broader strategy to accelerate the sector’s recovery. Achieving this target would mark a major milestone for the industry, which has gradually regained momentum after years of setbacks.
For the full year 2025, Sri Lanka recorded tourism revenue of approximately 3.22 billion US dollars, representing a modest increase of 1.6 percent compared with 3.17 billion dollars generated in 2024.
Visitor arrivals also grew significantly during the year. Official statistics showed that the number of foreign tourists rose by 15.1 percent in 2025, reaching a record 2,362,521 arrivals compared with 2,053,465 visitors in the previous year.
Despite this growth, the trend where Sri Lanka February tourism revenue down 4.3 pct highlights the ongoing challenge of improving revenue quality alongside expanding visitor numbers.
Before the pandemic and other disruptions, tourism was a far larger contributor to the national economy. In 2018, when the sector was at its peak, tourism accounted for nearly five percent of Sri Lanka’s gross domestic product and was one of the country’s top sources of foreign exchange.
The industry was severely impacted by the 2019 Easter Sunday attacks, which led to a sharp decline in visitor arrivals as security concerns spread globally. The crisis was followed by the global COVID-19 pandemic in 2020, which effectively shut down international travel for extended periods.
Sri Lanka’s tourism sector then faced additional challenges during the country’s economic crisis, which caused disruptions to fuel supplies, transportation, and broader economic stability.
Since then, the industry has been gradually rebuilding, supported by improved economic conditions and stronger international travel demand. However, authorities continue to monitor both arrivals and revenue closely as indicators of the sector’s health.
Tourism earnings are estimated through surveys conducted by the Sri Lanka Tourism Development Authority, which gathers data on visitor spending patterns, accommodation costs, travel expenses, and other tourism-related expenditures.
The downward revision of daily tourist spending has significantly influenced revenue estimates over recent months. While arrivals have increased, lower average spending per visitor has limited the pace of revenue growth.
Analysts note that the recovery of tourism earnings plays a broader role in Sri Lanka’s external sector. As foreign exchange inflows from tourism increase, they help support the balance of payments and contribute to domestic economic activity.
Tourism revenue also indirectly supports other sectors of the economy. Workers employed in hotels, restaurants, transportation services, and tour operations spend their income domestically, helping stimulate economic circulation.
As the country continues its tourism recovery, the trend where Sri Lanka February tourism revenue down 4.3 pct may encourage policymakers and industry stakeholders to place greater emphasis on improving visitor spending and overall value generation rather than focusing solely on arrival numbers.