Sri Lanka’s tourism sector is experiencing a remarkable resurgence. In the first quarter of 2024, tourism revenue surpassed the significant milestone of USD 1 billion, marking a staggering 103% growth compared to the same period in 2023. This positive trend is further bolstered by a substantial increase in tourist arrivals, with over 635,000 visitors recorded during the first three months – a rise of 89% year-on-year.
The previous year, Sri Lanka’s tourism receipts amounted to USD 503 million for the January-March period. This significant improvement in tourism revenue is a welcome sign for the country’s economy.
Another positive development is the upward trend in worker remittances. During the first quarter of 2024, Sri Lanka recorded USD 1.536 billion in revenue from this source.
Furthermore, the Sri Lankan rupee has seen a strengthening against several major currencies. In the period leading up to April 5th, 2024, the rupee appreciated by 8% against the US dollar. This positive trend extends to other currencies as well, with the Sri Lankan rupee appreciating by 15.5% against the Japanese yen, 9% against the pound sterling, 10.5% against the Euro, and 8.5% against the Indian rupee.
Sri Lanka’s gross official reserves also show promise. As of the end of March 2024, these reserves were provisionally estimated at USD 4,951 million. It’s important to note that this figure includes proceeds from a swap arrangement with the People’s Bank of China, which comes with specific conditions regarding how the funds can be used.