Sri Lanka Targets US$ 4 Bn Tourism Revenue with High-Yield Shift 📈

Sri Lanka’s tourism sector is pivoting from volume-driven growth to a high-value strategy, aiming to surpass US$ 4 billion in earnings for 2026. This follows a record-breaking 2025 which saw 2.36 million arrivals, outperforming the 2018 peak. • Key Performance Indicators Current Arrivals (As of Feb 15): 436,666 visitors, marking a 13% YoY growth. Pricing Power: 5-star hotel rates in Colombo surged from US$ 300 to US$ 500 during the ICC World Cup T20. Spending Goal: Strategic focus to increase the current average daily spend of US$ 148. • Interim Marketing Blitz Budget: Rs. 2 billion interim PR and digital campaign launching in April. Duration: 8-month bridge campaign until a full-scale global strategy (supported by ADB) is finalized. Target Markets: 12-15 key regions including India, UK, Germany, China, Russia, and the Middle East. • Sector Breakdowns & Diversification MICE: Segment grew from 5% to nearly 9% of total arrivals; target is to reach 20% by year-end. Niche Tourism: Renewed focus on wellness, marine tourism (whale watching/diving), wedding tourism (targeting India), and sports. Investments: Nearly 300 proposals received for upmarket, sustainability-focused tourism land projects. • Strategic Outlook The "value over volume" shift aims to improve yield through better product quality and regional expansion into hubs like Yala and Badulla. Promotional roadshows are planned across Asia and Europe to mitigate the post-April seasonal dip.