Sri Lanka’s tourism sector is struggling to convert rising visitor arrivals into higher revenue, with earnings in November 2025 declining sharply despite a record influx of tourists.
Central Bank of Sri Lanka (CBSL) data shows tourism earnings for November fell 8.5% year-on-year to $251.6 million, even as the country welcomed 212,906 visitors, a 16% increase from the previous November and the highest-ever monthly arrival for that period.
The disparity between arrivals and revenue underscores declining per-visitor spending.
Tourism earnings remain well below pre-crisis levels.
In November 2018, the country earned $367.1 million from tourism, $115.5 million more than November 2025, highlighting the persistent revenue gap despite recovering visitor numbers.
Cumulatively, the sector generated over $2.9 billion in the first 11 months of 2025, marking a modest 3.7% year-on-year increase.
However, this total is still 34.2% lower than the $3.9 billion recorded during the same period in 2018, the year Sri Lanka achieved its highest-ever annual tourism revenue of $4.38 billion.
Monthly earnings in 2025 have averaged around $264.6 million.
Monthly revenue has shown volatility throughout the year, with earnings falling 3% in July to $318.5 million, dropping further in August by 8.2% to $258.9 million, and recording only a marginal 1% increase in September to $182.9 million.
The strongest month was January, with earnings reaching $400.66 million, the highest since 2020.
Revisions to tourist spending estimates have also affected revenue expectations.
The Sri Lanka Tourism Development Authority lowered the per-day spending assumption from $171 to $148 following a national airport exit survey conducted from July 2024 to June 2025, with support from Australia’s Market Development Facility.
In light of subdued revenue growth, authorities have scaled back expectations, revising the 2025 tourism revenue target to $3 billion from an earlier $5 billion goal.
The government also reduced its 2030 projection from $10 billion to $8 billion in the 2026 budget, signaling more conservative outlooks amid slower-than-anticipated recovery in tourist spending.
Leave a comment