By: Staff Writer

September 16, Colombo (LNW): SriLankan Airlines has entered into a landmark partnership with Axis Bank, one of India’s largest private sector banks, to strengthen its presence in the region’s biggest outbound travel market. The deal offers a range of exclusive benefits to Axis Bank’s massive 15-million customer base, including discounted fares and enhanced travel privileges.

Under the agreement, Axis Bank credit and debit cardholders will receive an exclusive 10% discount on both Business and Economy Class tickets booked directly through the SriLankan Airlines website.

The discounted fares apply to flights from India to Colombo and onwards via Colombo to destinations across the Far East, Middle East, Maldives, and key European cities including Frankfurt and Paris. Passengers flying to Melbourne will also benefit from an additional 5 kilograms of free checked baggage allowance.

The airline said more promotions are in the pipeline as it seeks to expand its brand visibility in India. “This partnership is also remarkable as it marks the first time SriLankan Airlines has collaborated with a private Indian bank,” said Fawzan Fareid, Regional Manager for India, Bangladesh, and Nepal. “Our combined strengths will enable us to deliver great value to our customers as this partnership continues to grow.”

Axis Bank, India’s third-largest private lender, welcomed the move, citing travel as a growing lifestyle priority among its clientele. “Our association with SriLankan Airlines further strengthens our value proposition for customers seeking memorable and rewarding travel experiences,” said Arnika Dixit, President & Head of Cards, Payments and Wealth Management.

India remains Sri Lanka’s largest source market for tourism, accounting for over 19% of total arrivals so far in 2025. According to the Sri Lanka Tourism Development Authority (SLTDA), more than 290,000 Indian tourists visited the island between January and mid-September this year, underscoring the strategic importance of the Indian market.

SriLankan Airlines currently operates 88 weekly flights from nine Indian cities Mumbai, Delhi, Bengaluru, Hyderabad, Kochi, Thiruvananthapuram, Chennai, Tiruchirappalli, and Madurai connecting passengers to Colombo and onward to its international network.

The carrier has been steadily rebuilding its Indian operations following the pandemic, with traffic between the two countries recovering strongly in 2024 and 2025.

Industry analysts note that partnerships with financial institutions are becoming increasingly critical for airlines looking to capture high-value customers in competitive markets. With outbound travel from India projected to cross 80 million trips annually by 2030, SriLankan Airlines’ tie-up with Axis Bank is seen as a strategic move to secure a larger slice of the lucrative segment.

The airline said the partnership reflects its long-term commitment to strengthening regional connectivity and supporting Sri Lanka’s broader tourism revival strategy.

By: Staff Writer

September 16, Colombo (LNW): The Sri Lankan tourism industry is once again at a crossroads. While recent data shows foreign arrivals rising steadily, revenues are not keeping pace, raising doubts about whether the ambitious target of three million visitors and five billion US dollars in earnings for 2025 can be met.

Against this backdrop, the recent Sri Lankan-German Tourism Conference 2025, hosted in Colombo by AHK Sri Lanka under Germany’s Market Entry Program, has taken on particular significance as a potential lifeline for the sector.

The conference brought together industry experts, hoteliers, tour operators, government officials and German companies to forge new partnerships and promote a more sustainable and innovative model of tourism.

With Germany remaining one of Sri Lanka’s most important source markets, the discussions underscored how crucial German collaboration could be in shifting Sri Lanka’s tourism focus from raw visitor numbers to high-value, sustainable experiences.

Chief Delegate of AHK Sri Lanka Martin Klose made clear that German travelers are increasingly seeking authentic, eco-friendly and wellness-oriented holidaysan area where Sri Lanka has natural advantages but lags behind in service delivery and infrastructure.

Yet the numbers suggest the country is still falling short. In August 2025, Sri Lanka recorded 198,235 tourist arrivals, up 20.4 percent compared with the previous year, pushing total arrivals for the first eight months to 1.56 million.

This is a healthy increase of about 15 percent year-on-year. But the corresponding earnings tell a different story. Despite the influx, tourism revenue in August fell by 8.2 percent compared to 2024, amounting to just 258.9 million US dollars.

For the first eight months of 2025, total earnings rose only 5.7 percent to 2.29 billion dollars an increase far below the growth in arrivals. To meet the official annual target, Sri Lanka would need to attract around 360,000 visitors every month from September to December, double the August figures, and generate more than half its projected income in the final four months of the year.

This gap between arrivals and earnings highlights the central challenge facing the industry: tourists are coming, but they are spending less. The German initiative attempts to address this by emphasizing quality over quantity.

Conference panels explored what German travelers expect and how Sri Lanka can deliver, with inputs from Siddhalepa Ayurveda, Hilton Colombo Residences, Aitken Spence Travels and Cinnamon Life. Other sessions raised the provocative question of whether Sri Lanka could become “the new sustainable Bali,” focusing on regenerative tourism models that protect ecosystems while providing unique experiences.

German companies such as AquaRockBag, mascontour GmbH and Claussen Holding showcased solutions ranging from eco-technologies to training programs, while presentations highlighted new opportunities in MICE tourism, AI applications, and diversity and inclusion in hospitality.

The potential benefits of German support are significant. It can provide access to advanced expertise, finance, and credibility in a market that values sustainability. German endorsement of Sri Lanka as a destination can help attract not only German but wider European travelers who associate Germany with high standards.

Promoting under-visited regions such as Jaffna also offers a way to spread economic benefits and reduce pressure on overcrowded destinations. But risks remain.

The costs of upgrading infrastructure, training staff and delivering on promised sustainability standards are high, and failure to meet German visitor expectations could damage Sri Lanka’s reputation. Meanwhile, the country’s broader economic instability, currency fluctuations and inflation could erode any financial gains even if arrival numbers rise.

Ultimately, Sri Lanka’s tourism revival hinges on whether it can convert increasing arrivals into higher spending and repeat visitors. The German-Sri Lankan partnership offers a roadmap, but the clock is ticking.

Without swift improvements in quality, logistics, and marketing, the gap between lofty targets and harsh realities may only widen. German support may not be a silver bullet, but it could prove decisive in determining whether Sri Lanka’s tourism industry finally breaks free of its cycle of underperformance.

By: Staff Writer

September 16, Colombo (LNW): Sri Lanka’s financial system appears steadier in the short run, but cracks are visible in the medium-term horizon, according to the Central Bank of Sri Lanka’s (CBSL) latest Systemic Risk Survey (SRS) for the second half of 2025. Conducted between late June and mid-July with input from 146 financial institutions, the survey found improved confidence over the next 12 months, but a dip in confidence for the three-year horizon, underscoring the fragile nature of the country’s recovery.

Respondents including banks, insurers, stockbrokers, and microfinance institutions—assessed the probability of a high-impact negative event as lower in the short term yet higher in the medium term. The shift reflects a domestic economy showing signs of revival while still tied to an unsettled global environment.

Global Headwinds

The CBSL highlighted “global macroeconomic risks” as a key concern, citing geopolitical tensions, high borrowing costs, and slowing global trade. Fitch Ratings recently projected global GDP growth to slow to 2.4% in 2025, from 2.9% in 2024. With US tariffs raising average effective rates to 16% and European growth stagnating, the external outlook for small, trade-dependent nations like Sri Lanka remains challenging.

China’s fiscal easing and currency depreciation support its exports, but weak domestic demand there limits the rebound in Asian trade. For Sri Lanka—whose recovery depends heavily on exports and worker remittances these dynamics could suppress growth.

Domestic Lending and Growth Dynamics

Domestically, credit conditions show a mixed picture. Private sector borrowings grew by Rs. 201.5 billion in July 2025, lifting total outstanding credit to over Rs. 9.5 trillion by mid-year. While this supports investment and consumption, the July increase was smaller than June’s Rs. 221.5 billion, suggesting momentum is uneven.

The CBSL’s Willingness to Lend Index rose in Q2 2025, extending a nine-quarter upward trend. Yet the index subsequently fell from 59.6 in Q2 to 41.4 in Q3, signalling banks’ growing caution despite favourable liquidity.

Signs of Stabilisation and Fragility

International lenders such as the IMF and World Bank expect Sri Lanka’s GDP growth to hover around 2–3% in 2025, a modest rebound following contraction in 2022 and fragile recovery in 2023-24. Inflation, which exceeded 70% at its 2022 peak, is projected to average below 8% in 2025, aided by tight monetary policy and stabilising food and fuel prices. Foreign reserves, replenished partly through IMF disbursements and debt restructuring progress, stand close to US$ 5–6 billion, offering short-term cover for imports and debt servicing.

Yet risks persist. The country remains heavily dependent on remittance inflows and tourism, both vulnerable to global shocks. Public debt ratios, while under renegotiation, still exceed 110% of GDP, leaving little room for fiscal manoeuvre.

The Road Ahead

The SRS paints a nuanced picture: short-term confidence in financial stability has improved, but doubts linger about resilience beyond 2025. As one Colombo-based economist observed, “We’ve moved from the edge of crisis to a fragile plateau. The danger is mistaking short-term calm for lasting stability.”

For Sri Lanka, the path to true economic stability lies in navigating external turbulence, sustaining reform momentum, and building buffers against future shocks. The CBSL’s warning is clear: while the immediate horizon may appear calmer, the medium-term risks cannot be ignored.