Sri Lanka Tourism Shifts Focus from Colombo to Emerging Destinations like Ella and Southern Belt, Boosting Their Regional Growth and Local Economies

Published on December 13, 2025

The tourism industry in Sri Lanka is undergoing a definite shift, with spending by tourists gradually diversifying from Colombo to other developing destinations in the country, as per a recent findings report released by the Mastercard Economics Institute. Although Colombo is still the focal point for tourists visiting the country, the growth in spending on tourism has reduced for that destination, with increases evident in other destinations such as Ella, and villages within the Southern Belt such as Ahangama, Weligama, Mirissa, Dickwella, Matara, among others. This is because of the changing spending behavior of tourists who are now seeking less urbanized destinations that are rich in nature, scenic, and rich in cultural heritage.

This shift reflects the increasing attractiveness of the varied landscapes of Sri Lanka, as well as the interest of tourists in experiencing different adventures that go beyond the normal destinations. The rising number of tourists who are now venturing into the other regions, aside from Colombo, is likely to stimulate economic development as a result of such spending.

Impact on Local Economies: Supporting Regional Growth

The growing interest in destinations such as Ella and the Southern Belt is having a positive impact on local economies, particularly in rural areas that were previously underserved by high tourism traffic. Increased tourist arrivals in these regions have led to a boost in spending on local services, including accommodation, transportation, restaurants, and tourism activities. This has allowed small businesses in these areas to thrive and has created new job opportunities for local communities.

For example, Mirissa, known for its beaches and whale watching, and Weligama, with its surfing culture, are seeing sustained increases in visitor spending, with hotels and local markets benefiting from the influx of tourists. Similarly, Ella, an inland hub known for its scenic train rides and waterfalls, is rapidly becoming a must-visit destination, attracting travelers from both domestic and international markets.

This geographical diversification in tourism ensures that the benefits of tourism growth are more evenly distributed across the country, reducing the dependency on Colombo and coastal cities and supporting balanced economic development.

Promoting Sustainable Tourism and Diversified Offerings

As Sri Lanka’s tourism continues to evolve, the focus is increasingly on promoting sustainable tourism practices, particularly in emerging destinations. The rise of eco-tourism and nature-based travel is a key aspect of this shift, with tourists looking for authentic experiences that showcase the country’s natural beauty and cultural heritage.

Regions like Ella and the Southern Belt are embracing sustainable tourism practices such as eco-friendly hotels, responsible wildlife tours, and conservation initiatives. This shift toward sustainability ensures that tourism growth is achieved without compromising the environment or local communities. By promoting green tourism and focusing on low-impact travel, Sri Lanka can protect its natural resources while still benefiting from economic development.

In addition to eco-tourism, cultural tourism continues to thrive, with heritage sites like the Sacred City of Anuradhapura, Sigiriya, and the Galle Fort remaining popular among visitors. As cultural tourism becomes more diversified, regions like Ella and Matara are creating new cultural experiences that attract tourists interested in local crafts, traditional music, and authentic Sri Lankan cuisine.

The Future of Sri Lanka’s Tourism: Long-Term Economic Impact

Looking ahead, the shift toward regional tourism is set to play a key role in Sri Lanka’s long-term tourism strategy. As tourists increasingly explore destinations beyond Colombo, the country can expect sustained growth in both tourism revenue and job creation.

The rise in visitor spending outside of traditional tourism hubs is expected to stimulate economic activity across Sri Lanka’s provinces, helping to alleviate the pressure on more popular cities and provide a more balanced tourism model. This will also foster tourism diversification, creating opportunities for new tourism products and experiences that cater to the growing interest in sustainable, cultural, and adventure tourism.

Furthermore, this geographically distributed growth will contribute to the stability and resilience of the Sri Lankan tourism industry, ensuring that tourism revenues remain consistent throughout the year, particularly in off-peak seasons. Regional tourism development will also strengthen the resilience of local economies and create more opportunities for small-scale businesses in areas that may have been previously overlooked by mainstream tourism.

Sustainable Regional Growth for Sri Lanka’s Tourism

The change that has been witnessed in the tourism sector of Sri Lanka, with respect to spending in Ella, Weligama, Mirissa, Ahangama, Matara, and other new destinations, has been a result of the fact that the country is capable of attaining sustainable growth in the tourism sector while maintaining the country’s scenic charm.

The rising popularity of discovering alternative destinations continues to grow, with Sri Lanka set to become a leader in eco-tourism destinations as a country that offers a great platform for balanced development for tourists as well as the people of Sri Lanka. The responsible travel practices that are being adopted by countries such as Sri Lanka are set to maintain it as a major tourist destination in the future.