Sri Lanka’s foreign exchange revenue from tourism fell 10.9 percent year-on-year in June 2026 to US$151.1 million, hitting its lowest monthly level since October 2023, data from the central bank and the Sri Lanka Tourism Development Authority (SLTDA) showed.
First Half 2026 Tourism Revenue Declines Amid Revised Methodology
Total tourism revenue in the first six months of 2026 fell by 11.8 percent to US$1,511.1 million compared to US$1,712.6 million in the same period of 2025. The SLTDA revised the method for calculating monthly tourism earnings estimates in May 2026, applying this change retrospectively from January 2026 to improve accuracy and representativeness, according to the authority.
Since August 2025, monthly
tourism revenue has lagged relative to arrivals due to a downward revision in per-day tourist spending and visitor stay duration. Despite these adjustments, June 2026 marked the tenth monthly revenue decline within the past twelve months, excluding September and October 2025, even as tourist arrivals increased.
Geopolitical and Methodology Factors Affect Sector Performance
The decline in tourism earnings coincided with external geopolitical events, notably the U.S. and Israel bombing of Iran in late February 2026. Alongside this, the revised expenditure estimates have contributed to the reported drop in revenue. However, tourist arrivals continue to grow, indicating a divergence between visitor numbers and tourism income.
2025 Records and 2026 Targets Amid Ongoing Sector Challenges
In 2025, Sri
Lanka recorded tourism revenue of US$3.22 billion, a 1.6 percent increase over US$3.17 billion in 2024. Tourist arrivals rose by 15.1 percent to 2,362,521 visitors from 2,053,465 the previous year, representing a record number of arrivals. The tourism sector, which accounted for nearly five percent of the national economy at its 2018 peak, has faced disruptions from the 2019 Easter Sunday suicide attack, the 2020 COVID-19 pandemic, and a sustained economic crisis.
For 2026, the Sri Lanka government has set targets to attract 3 million tourists and generate US$4 billion in tourism revenue, despite recent declines in monthly earnings data.
