New Markets Rewrite Sri Lanka’s Tourism Industry Growth

Date:

By: Staff Writer

January 26, Colombo (LNW): Sri Lanka’s tourism sector delivered a record-breaking performance in 2025, welcoming more than 2.36 million international visitors, but the headline numbers only tell part of the story. Beneath the surface, a notable shift is underway as non-traditional and emerging markets post sharper growth than long-established source countries, reshaping the industry’s future trajectory.

While India, the UK, and Russia continued to dominate in absolute arrival numbers, year-on-year (YoY) growth data reveals a changing hierarchy. Pakistan emerged as the fastest-growing source market, recording an exceptional 65.75% YoY increase. Despite ranking just 20th in total arrivals, the surge underscores Pakistan’s untapped potential and its growing relevance to Sri Lanka’s tourism mix.

Bangladesh followed closely, registering a 50.58% YoY rise and ranking second in growth performance. Although it placed 10th in total arrivals, the momentum highlights strengthening regional travel demand within South Asia. Italy also stood out, posting a robust 30.27% growth rate and ranking third among the fastest-growing markets, reaffirming its position as a key European contributor.

Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nalin Jayasundera noted a visible shift in traveller profiles. He said Pakistan has shown strong interest in both leisure travel and Meetings, Incentives, Conferences and Exhibitions (MICE), while Bangladesh’s growth is largely driven by leisure visitors. He also attributed Malaysia’s 29.71% YoY increase to Sri Lanka’s free-visa policy, while highlighting Italians’ growing appetite for experiential travel across the island.

Other markets posting solid growth included the Netherlands (28.03%), India (27.46%), Japan (25.38%), France (22.83%), Australia (22.23%) and Spain (21.38%). Jayasundera stressed that Australia and Japan remain high-potential markets, particularly with the entry of new budget airlines and expanded air connectivity. Spain, he noted, could deliver even stronger numbers if direct flights are introduced.

In contrast, traditional strongholds recorded more modest gains. The UK grew by 19.03%, Germany by 8.73%, while China posted marginal growth of just 0.26%. Russia, despite being the third-largest source market with 186,580 arrivals, saw an 8.22% YoY decline. Israel and the Maldives also recorded contractions.

Industry analysts say the rise of diverse markets such as Poland, Switzerland, the US and Canada signals a healthier, more resilient tourism base. Reduced dependence on a handful of countries lowers vulnerability to geopolitical, economic, or travel disruptions.

Looking ahead, diversification is expected to accelerate in 2026 with the planned rollout of a free-visa regime for over 40 countries and the launch of a unified national tourism brand. Sri Lanka is targeting three million arrivals and $5 billion in revenue this year, with long-term ambitions of five million visitors and $8 billion in earnings by 2030.

Share post:

spot_imgspot_img

Popular

More like this
Related

Cyclone Shock Exposes Fragility of Sri Lanka’s MSME Backbone

Cyclone Shock Exposes Fragility of Sri Lanka’s MSME Backbone

Solar Setbacks Reveal Gaps in Sri Lanka’s Energy Coordination

Solar Setbacks Reveal Gaps in Sri Lanka’s Energy Coordination

Equipment Delays Drain Colombo Port Revenue and Container Efficiency

Equipment Delays Drain Colombo Port Revenue and Container Efficiency

Fashion Bug Triumphs in Retail Service Excellence at People’s Pinnacle Awards 2025

Rashika Hennayake January 26, Colombo (LNW):  Fashion Bug has been honoured...