📉 Sri Lanka Tourism Earnings Plunge to Lowest Level Since 2023 in April

Sri Lanka’s tourism earnings fell sharply in April 2026, marking the weakest monthly performance in nearly three years due to weaker arrivals, softer visitor spending, and global geopolitical uncertainty following the US-Israel-Iran war escalation. Key Figures & Trends • April Earnings: Dropped 39% YoY to US$ 157.1 Mn, representing the eighth monthly contraction over the past 10 months. • Cumulative Earnings (Jan-Apr 2026): Declined 19.4% YoY to US$ 1.11 Bn, down from US$ 1.37 Bn in the same period last year. • Tourist Arrivals: Dropped 22.32% YoY in April to 135,643, the lowest monthly arrival figure so far in 2026. • Visitor Spending: Average daily tourist expenditure has been revised down to US$ 148 from US$ 171 based on updated surveys. Sector Concerns & Outlook • Economic Impact: Tourism currently contributes around 3% to Sri Lanka's economy, remaining below the pre-2019 crisis level of nearly 5%. • Policy & Infrastructure: The Hotels Association of Sri Lanka (THASL) warned of potential multi-billion dollar losses due to policy delays, FX leakages, weak regulation, and a lack of global marketing. • Targets vs Reality: A widening gap exists between capacity and actual revenue, threatening the government’s 2026 targets of 3 million tourists and US$ 4.00 Bn in earnings. • Recovery Efforts: To restore competitiveness and boost arrivals, the Cabinet recently approved draft regulations to advance a long-delayed free visa policy.