By:Staff Writer
August 12, Colombo (LNW): Sri Lanka’s tourism earnings crossed the $2 billion mark in the first seven months of 2025, while foreign worker remittances—another major source of foreign exchange—have been climbing steadily in recent years, fueled by a surge in outbound migration during the country’s prolonged economic crisis.
Central Bank of Sri Lanka (CBSL) data shows tourism revenue reached $2.03 billion from January to July 2025, marking a 7.8% increase from the same period last year. However, earnings still lag behind the sector’s best-ever January–July performance of $2.59 billion recorded in 2018.
July 2025 revenue stood at $318.5 million, a 3% drop from $328.3 million in July 2024 despite welcoming 200,244 visitors. The decline reflects lower average spending per tourist, even though arrivals remained robust. On a month-on-month basis, earnings in July surged 88% from June’s $169.5 million, boosted by peak summer travel demand and higher daily arrivals. The strongest month so far this year was January, when earnings hit $400.66 million.
To meet the Government’s ambitious $5 billion annual tourism revenue target, the sector must bring in $2.96 billion over the next five months—requiring an average monthly income of nearly $594 million, more than double the current pace. President Anura Kumara Dissanayake has expressed optimism that 2025 will mark a record-breaking year for tourism, though industry experts caution that sustained inflows will require attracting higher-spending visitors and accelerating global marketing campaigns, which have been delayed.
Sri Lanka’s global image received a boost this year when Big 7 Travel named it the “World’s Best Island for 2025.” In response, the Cabinet has approved the establishment of a Presidential Task Force to fast-track tourism infrastructure, streamline regulations, and leverage global media exposure.
Parallel to tourism, foreign worker remittances—a critical lifeline for Sri Lanka’s economy—have also seen substantial growth. CBSL data over the past three years shows steady double-digit annual increases, reflecting a surge in the number of Sri Lankans seeking employment abroad during the 2022–2024 economic crisis. Severe foreign currency shortages, high inflation, and limited job opportunities pushed many to migrate, especially to the Middle East, Europe, and East Asia.
Efforts by the previous government to incentivise formal remittance channels, including higher exchange rates, duty-free allowances, and special banking facilities, have also contributed to the rise. Worker remittances reached a record $7 billion in 2024, accounting for over 8% of GDP and helping to stabilise the balance of payments.
Economists note that together, tourism and remittances now form the backbone of Sri Lanka’s foreign exchange earnings, covering a significant portion of the nation’s import bill and debt repayments. Sustaining growth in both sectors is seen as vital to ensuring economic stability in the years ahead.
