Policy Gaps Weigh on Tourism Earnings despite Arrival Growth
- Editor
- February 10, 2026
- Travel and Tourism
- 2025 target tourists
- 0 Comments
Sri Lanka’s tourism industry entered 2026 with strong visitor arrivals but weaker earnings, raising concerns over policy direction and value creation. Tourism revenue in January fell 6 percent year-on-year to $378.5 million, even as arrivals climbed 10 percent, according to official data.
Authorities recently revised average daily tourist spending downward, highlighting declining per-capita revenue despite rising volumes. January marked the fifth earnings decline in seven months, pointing to persistent structural issues.
Although tourism remains a key foreign exchange earner, revenue growth has lagged far behind the rebound in arrivals. Industry stakeholders cite inconsistent policies, delayed marketing initiatives, and the absence of a clear long-term strategy as key challenges.
With the Government targeting 3 million tourists in 2026, analysts warn that without a focus on higher-value tourism, increased arrivals alone may fail to restore the sector’s pre-crisis economic contribution.
