Sri Lanka’s tourism sector is seeing a strong comeback, with foreign exchange earnings reaching $2.17 billion in the first eight months of 2024—66.1% more than the same period last year. Tourist arrivals also grew by 50.7%, with over 1.36 million visitors so far. August alone saw a 20.7% rise in tourists, totaling 164,609.
At its peak in 2018, tourism contributed about 5% to Sri Lanka’s GDP. But the industry was hit hard by events like the 2019 Easter Sunday attacks, the COVID-19 pandemic, and a severe economic crisis. Despite these setbacks, the sector aims to hit 2.3 million arrivals in 2024, with revenue potentially reaching $5 billion by year-end. In August, tourism earnings reached $282.1 million, up from $210.5 million in the same month last year.
However, a newly introduced visa-on-arrival system, managed by VFS Global, has received criticism for its $21.61 fee and complex process. After legal challenges, the Supreme Court temporarily paused the program. To make travel easier, the government introduced a visa-free entry system for 38 countries starting in September 2024, following successful models like Singapore’s.
Tourism’s resurgence is also boosting economic activity, helping reduce the trade deficit by circulating earnings back into the local economy. These figures come from a survey conducted by the Sri Lanka Tourism Development Authority.
