In 2024, Sri Lanka welcomed 2,053,465 tourists, marking a 38.07% increase compared to 2023. For 2025, tourist arrivals are anticipated to reach an optimistic scenario of 3,000,000 and a conservative scenario of 2,676,596. Beyond the volume of arrivals, however, the revenue generated remains the bigger concern for the economy. 

Thus far, tourism revenue from January to June stands at $ 1.71 billion. Moreover, the average daily expenditure of a tourist in Sri Lanka is $ 171.74 and the average duration of stay is eight nights. 

Addressing revenue growth and attracting high-spending tourists, several industry stakeholders highlighted the need for improving accessibility, investments, and marketing alongside sharpened focus on luxury products.

Focus on experience-based tourism

Speaking to The Sunday Morning, Sri Lanka Tourism Promotion Bureau (SLTPB) Managing Director Sampath Nissanka stated that the current global trend in high-revenue tourism was experience-based tourism rather than mere sightseeing. 

He noted that Sri Lanka was developing signature tourism experiences to contribute to revenue growth, which would expand the length of stay and grow revenue generation, even for local communities.

Sri Lanka has long been reliant on traditional markets. Notably, national parks earned a revenue of Rs. 3.08 billion in the first half of 2025, with Yala National Park emerging as the highest income generator. 

Moreover, in the same period, international tourists generated Rs. 3.07 billion from conservation forests. In heritage sites, with Sigiriya remaining the flagship destination, foreign tourists accounted for over 90% of these earnings, totalling Rs. 297.1 million.

Nissanka noted that Sri Lanka had been somewhat limited to traditional tourism experiences, adding that this needed to be expanded to include adventure-based and community-based experiences. 

He highlighted a trend where tourists who arrived in Sri Lanka demonstrated interest in immersing themselves in local village life, local cuisine, and authentic experiences. Hence, he noted that a major focus for improved tourism revenue was developing experience-based tourism.

Furthermore, the Western Province remains the tourism hub of the country, recording the highest capacity for tourism and the strongest growth. This is followed by the Southern and Central Provinces, respectively.

Commenting on this concentration, Nissanka noted that the authorities were also looking at expanding this. He highlighted that most emerging and existing boutique hotels were generating high revenue while providing high-standard and unique experiences. Hence, he noted the importance of focusing on promoting these high-value tourism attractions. 

Moreover, according to Nissanka, wellness tourism is also a significant revenue contributor, with certain tourists staying for months and spending high amounts on treatments.

“Identifying and focusing on niche tourism markets such as these, while providing diversified and innovative experiences, will drive higher revenue growth for Sri Lanka. Hence, focusing on these aspects remains a priority at the moment,” he said. 

Need for promotional campaign roll-out

Industry stakeholders have been pushing for the launch of a global promotional campaign and unified national branding, which have experienced delays since their proposals to commence in early 2025. The planning for the global promotional campaign dates back to 2023. Stakeholders recognise its roll-out as integral to tourism growth in terms of arrivals and revenue.

Reflecting on tourism revenue growth, The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar pointed to the need for the immediate launch of global promotions, which he described as being more necessary than other measures.

“To attract high-spending tourists, they should know what Sri Lanka is and what Sri Lanka offers. Until the global promotion commences, there will be no significant improvement. This is the most important action for the industry and for revenue growth at the moment,” said Shanthikumar. 

Meanwhile, according to Nissanka, several internal issues in relation to the roll-out have been resolved, and the authorities hope to implement the campaign in the next couple of months, in what is anticipated to be a substantial boost for Sri Lankan tourism. 

While he noted that this was the primary concern as of now, he added that there would also be an improvement in regular promotions, business-to-business promotions, and digital marketing, especially influencer marketing, connecting marketing strategies with authentic, unique experience-based tourism. He noted that the authorities also hoped to accelerate social media marketing campaigns in the months to come.

Development of luxury establishments

In the first half of 2025, Sri Lanka’s registered tourism accommodation sector also saw a steady increase compared to the same period in 2024, with a 5.7% rise in the number of establishments (from 4,390 to 4,638) and a 6.2% increase in the total number of rooms (from 53,378 to 56,702). 

In terms of attracting high-spending tourism, as of 2025, Sri Lanka has 39 boutique hotels, 50 boutique villas, and 1,169 bungalows. There are also 31 five-star hotels and a similar number of four-star hotels across the country. However, so far, there exists only one establishment for themed accommodation and value-added activities. 

Sri Lanka Tourism Development Authority (SLTDA) Deputy Director General Upali Ratnayake highlighted that the authorities had facilitated the opportunity for investors to develop luxury boutique hotels and bungalows in order to expand products catering to high-end tourism, integral for revenue growth. He stated that investments were increasing heavily in these segments in most areas of the country. 

“For example, towards the interior of major tourist destinations, there are many developments of luxury boutique establishments, and several large hotel groups are also engaged in these up-market niche boutique luxury establishments,” he noted.  

Accordingly, he noted that several up-market products and sustainable tourism products had been introduced based on tourism trends, while attracting a suitable customer base with various investments in these areas as well.

In addition, according to Ratnayake, all related aspects including supply, demand, and market have been developing. He also pointed to developments in accessibility alongside these establishments, especially in terms of highways and even domestic air access in a private capacity.

Addressing shortcomings 

Tourist arrivals to Sri Lanka during the first half of 2025 showed a strong upward trend, with a total of 1,168,044 visitors, marking a 15.6% increase compared to the same period of 2024, with each month from January to June recording year-on-year growth. 

In terms of investment growth, during this six-month period in 2025, a total of 51 investment project proposals were received with a cumulative proposed investment value of $ 169.096 million. Out of this, 22 projects were approved, with an investment value of $ 53.566 million. 

Speaking to The Sunday Morning, industry veteran and Jetwing Symphony Chairman Hiran Cooray elaborated on attracting high-end tourism for revenue growth, stating that Sri Lanka was now in the best position to market the country for tourism in order to improve overall growth. 

“I would like Sri Lanka to be positioned alongside the President’s initiative of Clean Sri Lanka. If the country is moving forward along this path, it’s important to communicate this message to the rest of the world. This is a major step in the direction of attracting high-end tourism and investments into the country. In addition to that, the industry should also be confident in the country’s product,” Cooray said. 

Moreover, he added that attracting diaspora members who would like to re-invest in the country would also lead to growth in high-net-worth tourism. 

In addition, he highlighted the need to safeguard national assets, especially cultural assets, and prevent them from over-visitation through proper visitor management. He said that a failure to do so would make it difficult to attract high-spending visitors. 

“Ensuring a smooth flow in the arrival process is also integral, as the journey begins there. While the airports are better now, there is a requirement for proper transportation facilities for independent high-end tourists. 

“For instance, even a tourist who has failed to book through a reputed travel agency should still be able to experience a smooth process in immigration, Customs, and accessing a comfortable vehicle to travel to the destination. This process is still a bit complicated,” he added. 

Similarly, former President of the Association of Small and Medium Enterprises in Tourism (ASMET) Rohan Abeywickrama highlighted accessibility developments needed for revenue growth. 

According to Abeywickrama, catering to high-spending tourists has been somewhat affected due to issues in facilities offered by the country, with improvements especially required in road, air, and sea accessibility. 

He noted that there was a lack of a proper transportation system to hire luxury cars in good condition, as the majority of vehicle hiring agencies’ fleets were around a decade old. He also highlighted online train ticket booking issues, with tickets being unavailable soon after the links were made open.

Commenting on air travel, Abeywickrama stated that only two helicopters were available for hiring purposes at the moment, leading to logistical concerns for tourists who required these facilities. On the sea side, he noted the need for proper lifeguard operation systems and investments for equipment.

“Moreover, proper marketing is essential, since otherwise reaching the set targets or improving revenue would not be possible,” he added.