Sri Lanka Posts Double-Digit Growth in Q1 2025 Tourism Arrivals and Revenue as Global Travelers Return to Island’s Key Tourist Hubs

Published on April 13, 2025

Sri Lanka’s tourism industry is showing promising signs of growth as the country recorded a significant increase in both tourism earnings and workers’ remittances in the first quarter of 2025, according to new data released by the Central Bank of Sri Lanka. This dual rise in foreign income sources comes as a positive indicator for the country’s economic stability and travel sector revival following several challenging years.

Between January and March 2025, Sri Lanka welcomed more than 722,000 international tourists, marking a 13.6% increase compared to the same period in 2024. The sharp rise reflects improving travel confidence, streamlined visa processes, and the return of demand for the island’s popular coastal, cultural, and nature-based tourism experiences.

Tourism Earnings Reach $1.1 Billion in Just Three Months

Corresponding with the surge in arrivals, Sri Lanka’s tourism earnings exceeded 1.1 billion U.S. dollars in the first quarter alone—an impressive 9.4% year-on-year growth. These numbers underscore a significant rebound in the hospitality and travel sectors, especially in key destinations like Colombo, Galle, Kandy, Ella, and Sigiriya, where occupancy levels have reportedly risen.

This uptick is being supported by both independent travelers and group tours from major markets in India, Russia, Germany, the UK, and China, who are drawn to Sri Lanka’s combination of wellness retreats, wildlife safaris, UNESCO heritage sites, and culinary tourism offerings.

Remittances Continue Upward Momentum

Parallel to the tourism boom, workers’ remittances have also seen a major increase. From January to March 2025, Sri Lanka received more than 1.8 billion U.S. dollars in remittances, compared to 1.5 billion U.S. dollars during the same period last year.

The growth follows a broader trend observed in 2024, when total remittance inflows reached 6.57 billion dollars, reflecting a 10.1% year-on-year growth. This continued momentum suggests increasing trust in the country’s financial systems and improved overseas employment conditions for Sri Lankan expatriates.

Travel Industry Impact and Outlook for 2025

The rise in tourism and remittances offers a much-needed boost to Sri Lanka’s foreign exchange reserves, allowing for greater economic flexibility and infrastructure investments in the tourism sector. With the current growth trajectory, the country is poised to meet or surpass pre-pandemic levels of tourist arrivals by the end of 2025.

This positive shift is also expected to:

• Support thousands of jobs in the tourism and service industries
• Encourage renewed interest from international airlines and tour operators
• Stimulate rural economies through increased demand for eco-tourism and homestays
• Bolster investor confidence in Sri Lanka’s travel and hospitality segments

Strategic Initiatives Likely to Sustain Growth

Sri Lanka’s Ministry of Tourism is reportedly preparing to launch new promotional campaigns targeting the Asia-Pacific and Middle Eastern markets, while also reinforcing ties with traditional European source markets. These campaigns are expected to include roadshows, digital influencer partnerships, and MICE tourism showcases.

Additionally, infrastructure upgrades at key airports, including Bandaranaike International Airport (Colombo) and Mattala Rajapaksa International Airport, are likely to enhance connectivity and streamline arrivals.

A Positive Signal for Regional Tourism Recovery

Sri Lanka’s rebound offers a valuable case study for other South Asian and Indian Ocean tourism economies, especially in how diversified income streams like tourism and remittances can work in tandem to stabilize and grow national economies.

As global travel continues its post-pandemic evolution, Sri Lanka’s example shows the importance of data-driven recovery plans, targeted source market campaigns, and support for both inbound travelers and overseas worker communities.