The Asian Development Bank (ADB) has approved a $ 100 million financing package to support Sri Lanka’s tourism sector with strategic policy reforms and targeted catalytic investments, which align with the country’s National Tourism Policy.

The project will support sector governance improvements, enhance private sector participation, boost tourist arrivals and foreign exchange earnings, and address the infrastructure gap, while strengthening product development and high-end destination marketing.

The funding for the Sustainable Tourism Sector Development Programme consists of a concessional loan of $ 70 million and a regular loan of $ 30 million from ADB.

“Although Sri Lanka’s tourist arrivals in 2025 returned to 2018 levels, earnings have remained below pre-pandemic figures,” said ADB Country Director for Sri Lanka Takafumi Kadono. 

“Through appropriate policy and institutional reforms, infrastructure enhancements, and improved sector resilience against internal and external shocks, tourism can become the engine of inclusive economic growth.”

This programme will support policy and institutional reforms across multiple areas of the sector including governance, asset management, tourism promotion and marketing, skills improvement and digitalization, and sustainable tourism and urban development in two major tourism destinations, namely Dambulla (including Sigiriya) and Trincomalee.

The programme will help diversify the sector by promoting untapped tourism areas including marine tourism, opening up new destinations, increasing tourist stay and spend, and creating an enabling environment for increased women’s participation in the sector.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members – 50 from the region.