Sri Lanka is revising its tourism strategy to prioritize the economic value generated per visitor and increase retention of tourist spending within local communities. The new approach departs from prior efforts focused chiefly on raising visitor arrival numbers and aims to distribute tourism benefits geographically and economically across the country.
Tourist Arrivals and Revenue Targets
The country recorded 2.36 million tourist arrivals in 2025, surpassing levels seen in 2018, but generated only around $3.2 billion in tourism revenue. The government targets $8 billion in tourism earnings and four million visitors by 2030, emphasizing higher per-visitor value over volume growth. Tourism Ministry Secretary Aruni Ranaraja said
the strategy will prioritize longer stays, increased spending, superior experiences, and sustainable asset use.
Economic Leakage and SME Focus
Economic leakage from tourism remains a major concern, as much of the visitor expenditure flows abroad through international airlines, global hotel chains, and overseas suppliers. Informal tourism activities risk further reducing formal economic benefits. Aninver Development Partners CEO Jose de la Maza highlighted that tourism’s entrepreneurial nature requires support in skills, financing, incentives, and business environment to promote small and medium enterprises (SMEs), which are expected to form the backbone of local spending retention.
Geographic Diversification and Infrastructure Challenges
The strategy calls for the development of distinct tourism identities for Sri
Lanka’s nine provinces, leveraging assets such as heritage, wildlife, cuisine, wellness, adventure, marine resources, and crafts. National Tourism Strategic Planning consultant Dr. Malraj Kiriella emphasized the North and East provinces’ untapped cultural and coastal potential but cited poor connectivity and infrastructure as barriers. The focus will be on creating market-ready, high-value experiences rather than merely redistributing tourists among locations.
Implementation Timeline and Stakeholder Roles
The National Tourism Strategic Plan for 2026-2031 will be developed over roughly 34 weeks, with data collection and spatial analysis starting the process. Two national workshops are scheduled—one in mid-October and another in January—to review emerging proposals. Completion is expected around
February 2027. Meanwhile, a six-month Global Destination Communication Campaign Road Map led by Skift Inc. and MTI Consulting will provide the foundation for the 2027 international marketing plan. The World Bank is supporting the initiative with a $300,000 grant under its Grant Facility for Project Preparation.
Official Statements on Strategic Shift
Tourism Deputy Minister Prof. Ruwan Ranasinghe stated, “We need to focus on value. That is the way forward,” underscoring the transition from volume to value. He noted that ecological limits and cultural asset fragility cap sustainable visitor growth. Prof. Ranasinghe added that the key challenge is how much sustainable economic value Sri Lanka can
generate from each tourist rather than simply increasing arrivals. Jose de la Maza warned, “Informality could create another form of leakage from the formal economy,” stressing the need for entrepreneurial support. Dr. Malraj Kiriella emphasized overcoming infrastructure barriers in the North and East to develop high-value tourism products aligned with regional identities.
