📈 Tourism Leakage: Sri Lanka Loses US$ 1.13 Bn Annually

A rapid assessment by the SLTDA and UN Tourism reveals that despite record arrivals, a significant portion of earnings is exiting the economy. The focus is now shifting from volume to value retention. • Overall Figures: • Annual Leakage: US$ 1.13 Bn (approx. 1/3 of every dollar earned). • 2025 Earnings: US$ 3.2 Bn (on 2.36 Mn arrivals). • Revenue Growth: Only 1.6% YoY in 2025, despite record arrivals. • Daily Spend: Revised downward to US$ 148 from the previous US$ 171. • Leakage Breakdown: • Procurement Imports: Over US$ 800 Mn spent on imported food, beverages, and equipment. • Fiscal Loss: US$ 84.8 Mn lost annually due to informality and tax non-payment. • Wellness & Ayurveda: Highly concerning leakage rate exceeding 50%. • Key Insights & Strategy: • Accommodation and inbound operators are primary areas for structural reform. • The SLTDA is developing a three-year roadmap to strengthen local supply chains and formalize the sector. • Goal is to reduce reliance on imports and improve the quality of growth rather than just increasing visitor numbers.