Sri Lanka to Launch Free Visa Scheme; 2025 Target Revised Down 📉

• Tourism Minister announced the long-delayed free visa policy for 47 countries is expected to be implemented within 1-2 months, following the finalisation of regulations. • The scheme is projected to lead to an annual loss of $\sim$US$ 66 million in visa revenue but is expected to generate higher indirect earnings from increased tourist spending. Industry experts, however, noted the move is likely too late for the current winter season. • Sri Lanka's 2025 tourist arrivals target has been revised down from 3 million to 2.4 million. Efforts are now focused on achieving this revised goal in the last two months. • YTD arrivals (as of late October) surpassed 1.86 million. Arrivals for the first 26 days of October showed a strong 22% Year-on-Year (YoY) growth. • Tourism revenue reached US$ 2.47 Billion for the first nine months, significantly short of the US$ 5 Billion annual revenue goal. • India, the UK, and Russia remain the top source markets. Promotional campaigns are underway, particularly targeting high-end travellers from Europe, including the UK and Scandinavian countries. • Passenger volumes and flight operations are expected to increase in the next two months, supported by new airlines like Kuwait Airways and Belavia, among others.