Sri Lanka’s tourism sector has shown a significant recovery, with foreign exchange earnings from tourism reaching $2.17 billion in the first eight months of 2024. This represents a 66.1% increase compared to the same period in the previous year, alongside a 50.7% rise in tourist arrivals, totaling over 1.36 million visitors. In August alone, arrivals increased by 20.7% to 164,609 visitors.
At its peak in 2018, tourism contributed nearly 5% to Sri Lanka’s GDP. However, the industry faced setbacks due to the Easter Sunday attacks in 2019, the global COVID-19 pandemic in 2020, and a severe economic crisis thereafter. Despite these challenges, the sector is aiming for 2.3 million arrivals in 2024, projecting tourism revenue to hit $5 billion for the year.
August saw tourism earnings estimated at $282.1 million, up from $210.5 million the previous year. However, the introduction of a new on-arrival visa system managed by VFS Global, which charges a fee of $21.61, has faced criticism for potentially deterring tourists due to its complexity and costs. This led to a temporary halt by the Supreme Court following legal challenges over the procurement process.
In response, President Ranil Wickremesinghe’s administration has introduced a ‘one chop system’ for visa-free entry from 38 countries, effective from September 2024, to stimulate tourist inflows. This initiative aims to simplify entry for tourists from these nations, mirroring successful models like Singapore’s.
The tourism earnings figures are based on a survey by the Sri Lanka Tourism Development Authority. The resurgence in tourism has also influenced economic activities, with increased earnings contributing to a rise in imports and narrowing the merchandise trade deficit as the sector’s income circulates back into the economy.
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Sri Lanka’s 2024 first half tourism revenue surpasses $1.5 bn with 78-pct rise