Sri Lanka’s foreign exchange earnings from tourism increased by 3.5% year-on-year in October 2026, reaching US$192.7 million, according to data quoted by the Central Bank of Sri Lanka from the Sri Lanka Tourism Development Authority (SLTDA). Monthly tourist arrivals also rose 2.1% compared to October 2025, marking the third consecutive month of growth in tourism revenue.
Year-to-Date Tourism Revenue and Arrival Trends
Despite the October growth, total tourism revenue for the first ten months of 2026 declined 8.3% to US$2,437.9 million, down from US$2,659.0 million in the corresponding period of 2025. Tourist arrivals similarly recorded a 1.5% drop year-on-year for the same period. Sri Lanka has
lowered its 2026 forecast for arrivals to 2.7 million from an earlier target of 3 million, while the revenue target was adjusted down to US$4.2 billion from US$5 billion.
Revision of Tourism Revenue Methodology
The SLTDA updated its methodology for estimating monthly tourism earnings in May 2026, applying the changes retrospectively from January 2026 to enhance accuracy and representation. This revision affected reported figures for revenue starting from October 2025, contributing to the downward trend observed. The agency modified assumptions on average daily tourist spending and length of stay, which influenced revenue calculations.
Factors Affecting Tourism Sector Performance
Tourism earnings in Sri Lanka reached their lowest point in 32 months
in June 2026, a decline linked to geopolitical tensions such as the U.S./Israel bombing of Iran commencing on February 28, 2026. The sector has faced multiple setbacks since 2018, including the 2019 Easter Sunday suicide attacks, the Covid-19 pandemic in 2020, and an ongoing economic crisis that has restrained growth and visitor inflows.
Historical Tourism Performance Metrics
In 2025, Sri Lanka’s tourism revenue increased 1.6% to US$3.22 billion from US$3.17 billion in 2024. Tourist arrivals surged 15.1% during the same period, reaching a record 2,362,521 visitors compared to 2,053,465 in 2024. At its peak in 2018, tourism accounted for nearly 5% of Sri Lanka’s
economy, underscoring the sector’s significant role before successive crises influenced its trajectory.
