Industry Shows Strong Recovery with Steady Growth in Arrivals and Revenue
Sri Lanka’s tourism industry has kicked off 2025 on a strong note, raking in over $1 billion in earnings during the first quarter — a significant achievement highlighting the sector’s resilience and promising growth trajectory.
According to the latest data released by the Central Bank, tourism earnings in the first three months of 2025 totaled $1.12 billion, marking a 9.4% increase compared to the same period last year. In contrast, it took seven months to reach this milestone in 2024, reflecting the accelerated pace of recovery this year.
March alone contributed $354 million in earnings, a 5% year-on-year (YoY) growth compared to March 2024. However, there was a slight 4% dip compared to February, when tourism earnings peaked at $400.66 million — the highest monthly figure recorded since 2020. Despite this, March earnings remain below the sector’s historic high of $460.5 million in March 2019.
Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB), emphasized that efforts are underway to enhance tourist experiences and infrastructure, aiming to increase the average daily spend from $171 to over $200.
“The focus is on improving services and facilities to boost revenue and solidify Sri Lanka’s position as a premier tourist destination,” Hewawasam stated.
The upward trend in earnings is complemented by a surge in arrivals, with 722,276 tourists visiting Sri Lanka in the first quarter of 2025, compared to 635,784 during the same period last year. The strong performance demonstrates the sector’s recovery from past challenges, including the devastating Easter Sunday attacks in 2019.
Looking ahead, Sri Lanka Tourism has set ambitious targets for 2025 — attracting 3 million visitors and generating over $5 billion in tourism income. With major global promotional campaigns set to launch post-Avurudu under a new brand identity, industry stakeholders are optimistic about reclaiming Sri Lanka’s status as a top global travel destination.
Tourism continues to be a vital source of net foreign exchange earnings for the country, with minimal outflows, further underscoring its critical role in economic stability and growth.