- Despite tourist arrivals surpassing 2018 numbers, earnings have yet to reach previous highs: CT Smith
- SL is focusing on attracting high-value visitors through MICE tourism, niche segments to boost earnings
Sri Lanka is struggling to attract high spending travellers despite high tourist numbers as tourism earnings are yet to surpass 2018 figures, Sri Lankan Capital Market service provider CT Smith said.
It said that despite inflation Sri Lanka continues to face the challenge of attracting high-spending travellers as 2018 figures, limiting the sector’s overall economic contribution.
During the year until 14 September, Sri Lanka welcomed 1,641,881 tourists, surpassing the year-to-date (y-t-d) arrivals of 2018. The sector reported earnings of $ 2.3 billion for the first eight months of 2025, reflecting a 6% year-on-year (y-o-y) increase.
CT Smith said that drivers behind expected sector growth include increased air connectivity, the implementation of visa-free access for 40 countries in the coming months, national branding efforts, and public-private initiatives, which are expected to have a positive impact on the tourism sector.
“However, the national branding campaign, which was initially scheduled for early 2025, is yet to be launched. With its commencement, a strong turnaround in arrivals can be expected in the coming months,” it said.
CT Smith forecasts tourism arrivals numbers are likely to exceed 2018 levels, with increased interest from key source markets in the near term.
It projects 2.4 million arrivals and $ 3.4 billion in earnings by the end of 2025, increasing to three million arrivals with $ 4.3 billion in earnings by the end of 2026.
Moreover, it said that moving forward, under new initiatives, the country plans to attract more high-spending visitors by focusing on MICE tourism, niche segments, and the commencement of casino operations at the City of Dreams integrated resort facility to fuel tourism revitalisation.
Further, CT Smith said Sri Lanka ranks high compared to its regional peers, in 2024 having recovered 88% of its peak arrival numbers from 2018, with the relatively weaker local currency against the US dollar making it a more affordable holiday destination than both regional peers and pre-pandemic levels.