Sri Lanka’s tourism sector saw a significant boost in foreign exchange revenue, reaching $181 million in September 2024, an 18.9% increase from $152.2 million during the same month last year, according to the Central Bank, citing data from tourism promotion authorities.
For the first nine months of 2024, tourism revenue surged by 61.2%, totaling $2.35 billion, up from $1.46 billion in the same period in 2023. The rise in revenue aligns with the increase in tourist arrivals, which rose 9.1% year-on-year to 122,140 visitors in September 2024. Additionally, the total number of visitors for the first nine months reached 1.48 million, a remarkable 46.1% jump compared to the same period last year.
Sri Lanka aims for 2.3 million tourist arrivals and $5 billion in revenue for the entire year of 2024. The country’s peak tourism season, which runs from November to early March, is expected to contribute significantly toward meeting this ambitious target.
Tourism once contributed nearly 5% of Sri Lanka’s economy, with its peak in 2018. However, the sector has faced several challenges, including the 2019 Easter Sunday attacks, the 2020 COVID-19 pandemic, and a severe economic crisis.
The sector saw renewed optimism when the new government under President Anura Kumara Dissanayake reinstated a previous visa process following a Supreme Court ruling. This decision was expected to boost tourist arrivals after a slowdown attributed to the introduction of a complex on-arrival visa system via VFS Global, which imposed a $21.61 fee on foreign visitors who previously obtained visas free of charge.
The leisure industry protested against the higher fees and the complicated website, which deterred potential visitors. In response, the Supreme Court temporarily halted the new visa system after opposition parties raised concerns over the improper tender process.
A visa-free entry system, similar to Singapore’s, was also approved for 38 countries by the former government under President Ranil Wickremesinghe. However, it awaits parliamentary approval, which could only be granted after the general elections scheduled for November 14.
Tourism earnings are projected from a survey conducted by the Sri Lanka Tourism Development Authority. The rise in tourism income has had a positive effect on Sri Lanka’s imports and merchandise trade deficit as people in the sector spend their wages and other earnings, driving economic activity.