FINANCIAL CHRONICLE – In August 2026, Sri Lanka experienced a modest increase in foreign exchange earnings from tourism, marking the first such rise in ten months. The central bank, referencing data from the tourism promotion authority, reported that revenue climbed by 2.1 percent year-over-year, reaching US$264.4 million.
This uptick in revenue occurred despite a 3.3 percent decrease in tourist arrivals for the same month. Since October 2025, tourism revenue had been on a downward trend, attributed to the government-owned tourism body adjusting its estimates for daily tourist spending and the average length of stays.
Over the first eight months of the year, total tourism revenue fell by 10 percent, totaling US$2,061.1 million, down from US$2,290 million during the same period last year. Additionally, the number of arrivals during these months showed a decline of 2 percent.
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June 2026 marked a significant low point, as the country recorded its lowest tourism revenue in 32 months. This decline is believed to have been accelerated by the onset of the U.S./Israel bombing of Iran, which began on February 28.
In May of this year, the Sri Lanka Tourism Development Authority (SLTDA) updated its methodology for calculating monthly tourism earnings, retroactively applying these changes from January in order to improve accuracy and representativeness.
According to official statistics, tourism revenue has been consistently lower since August of the previous year, primarily due to the authority’s downward adjustment of per-day spending by tourists. Consequently, Sri Lanka has revised its tourism arrival target for the year from 3 million to 2.7 million and has lowered its revenue goal from US$5 billion to US$4.2 billion.
In 2025, the island nation achieved US$3.22 billion in tourism revenue, representing a 1.6 percent increase from US$3.17 billion in 2024. The number of foreign visitors rose significantly, with a 15.1 percent increase compared to the previous year, bringing the total to a record 2,362,521, up from 2,053,465.
Tourism represented nearly 5 percent of Sri Lanka’s economy at its peak in 2018. However, the sector has faced numerous challenges, including the devastating Easter Sunday attacks in 2019, the Covid-19 pandemic in 2020, and an ongoing economic crisis.
The SLTDA compiles tourism earnings data based on survey results. As tourism revenues have begun to flow in, both imports and the merchandise trade deficit in Sri Lanka have gradually increased, reflecting the spending patterns of individuals employed in the tourism sector. (Colombo/September 19/2026)
