Courtesy  The Daily Mirror

• December revenue dips to US$ 309mn
• Annual earnings flat at US$ 3.2bn

Earnings from Sri Lanka’s tourism industry disappointed in 2025, as revenue failed to correspond with the surge in arrivals, which reached a fresh high during the year. 

For instance, the country attracted 258,928 visitors in December – about 10,000 more than a year earlier – bringing total arrivals for the year to 2,362,521, up 15.1 percent from 2024.

However, earnings in December 2025 came in lower at US$ 308.6 million, down from US$ 362.1 million a year ago. This trend was reflected in the cumulative performance as well, with full-year revenue reaching US$ 3,219.2 million, a marginal 1.6 percent increase over 2024. Addressing this disparity, SLTDA and SLTPB Chairman Buddika Hewawasam recently noted that the industry is now in the process of recalibrating its data. Preliminary findings from a comprehensive 12-month survey, which covered a sample size of 10,000, indicated that daily tourist spending had declined to US$ 148, a sharp drop from the previously estimated US$ 171. Hewawasam attributed this correction to the outdated nature of the previous 2010 benchmark, significant shifts in the exchange rate, and a general reduction in global travel expenditure in the post-Covid landscape.

This data raises the pertinent question of whether Sri Lanka is attracting the right mix of tourists, as a significant portion appears to be low spenders and backpackers seeking inexpensive getaways. Many of these visitors rely on budget transport options like three-wheelers and scooters, drawing criticism from sections of the local community for not meeting the perceived standards of international visitors.  Meanwhile, the SLTDA has embarked on efforts to measure leakage – the share of tourism income that flows out of the country. While leakage surveys serve a statistical purpose, the SLTDA must recognise that they offer limited value from a practical business perspective.

Nevertheless, Sri Lanka continues to pin high hopes on the sector to support broader economic recovery. While the country aims to attract three million visitors in 2026, authorities have refrained from committing to a specific revenue target just yet. 

Hewawasam recently remarked that the authority is awaiting the final outcome of the sector survey before forecasting earnings, ensuring future targets are based on grounded reality rather than speculation.

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Arrivals record marginal growth in first four days of January

Sri Lanka welcomed 33,076 tourists during the first four days of January 2026, recording a marginal growth of 2.6 percent compared to the same period in the previous year. In comparison, the island nation received 32,234 visitors during the first four days of 2025.

While the year-on-year trajectory remains positive, the daily arrival average of 8,269 witnessed in early January indicates a slowdown compared to the latter half of December 2025. The final weeks of December saw significantly higher traffic, with daily arrivals peaking at 12,397 and the final week alone recording nearly 100,000 visitors, driven by peak winter holiday demand.

India maintained its position as the leading source market, contributing 5,065 arrivals, which accounts for 15 percent of the total traffic. The Russian Federation followed as the second-largest market with 3,948 visitors, representing a 12 percent share. The United Kingdom and Germany also remained key contributors, bringing in 2,914 and 2,862 tourists respectively, and each commanding a 9 percent share of the total arrivals.

Other notable markets included Australia with 1,790 arrivals, Poland with 1,658, and the United States with 1,137 visitors. Traditional European markets continued to show interest, with Italy contributing 1,119 tourists, while China and France rounded out the top ten with 1,044 and 991 arrivals respectively.