SL Tourism: From Peak Revenue to Future Growth Strategy 📈

• Tourism has been a key driver of economic growth and foreign currency earnings since 2009, succeeding tea as the primary 'cash cow' source. • Sector revenue peaked at over US$ 4.4 Billion in 2018 before dropping to US$ 3.6 Billion following the 2019 Easter attacks and further impacted by the COVID-19 pandemic. • The current government is strategically promoting the sector to boost the national economy, focusing on job creation for rural communities and youth, and expanding into sustainable experiences like eco-tourism and community-based tourism. • A US$ 100 Million loan package has been secured from the Asian Development Bank (ADB) (US$ 70M as a concessional loan) to fund tourism promotion, with the sector targeted as a major source of foreign exchange for 2026. • Caution: Over-reliance on tourism poses risks due to high vulnerability to global crises. Diversification is advised into sectors like agriculture and renewable energy (solar/wind), along with attracting Foreign Direct Investment (FDI) to these areas.