Sri Lanka is focusing on enhancing the quality of its tourism offerings to woo high-end travellers this year amidst signs of hospitality industry revival with nearly 40,000 arrivals in the first five days of the year, reflecting a strong start   .

Tourim Minister Vijitha Herath speaking at an inauguration of a new ayurvedic resort in Bentara, stressed the need for a balanced approach that prioritises both quality and quantity of tourist arrivals.

“Tourism is not only an industry, it also reflects our history, culture, and heritage,” he said, describing ayurvedic treatments under wellness tourism is a major potential area for the industry to capitalise on and attract affluent visitors for longer stays.

Herath asserted that attracting high-end tourists would require a strategic push towards improving overall service standards, travel experience, and an innovative line of product offerings.

Noting that the country achieved the third highest tourist arrivals last year with over 2.05 million visitors, he said the industry has set an ambitious target to attract 3 million travellers this year.

The Minister also acknowledged challenges in the industry, where some visitors “misuse their tourist visa” to engage in business activities and overstay.

He pointed to the need of permissible business opportunities via quality partnerships and joint ventures to mitigate illegal activities, while simultaneously drawing investment and fostering economic growth.

Such initiatives could generate local employment, encourage cultural exchanges, and ensure that tourism’s benefits extend beyond urban hubs to rural communities.

Sri Lanka’s tourism industry kicks off 2025 with nearly 40,000 arrivals in the first five days of the year, reflecting a strong start.  The 39,415 arrivals in the first five days represent a significant increase compared to 32,453 tourists welcomed during the same period in 2024.

This surge reflects a growing momentum for the sector, boosted by an influx of Russian tourists who led the charge in early 2025.

The latest data released by the Sri Lanka Tourism Development Authority (SLTDA) shows that daily arrivals have also improved to 7,883 compared to 6,491 per day during the same window last year – reflecting a noteworthy progress in footfall.

Breaking down the top markets in the first five days of January 2025, Russia led with 6,481 arrivals, followed closely by India which contributed 6,183 tourists.

The UK ranked third, adding 2,928 to the growing influx of holidaymakers. Other notable markets contributing to the positive trend include Germany, Australia, the US, Poland, France, China, and the Netherlands.

Sri Lanka Tourism has set ambitious goals for 2025, aiming to attract 3 million visitors and generate $ 5 billion in revenue. The long-term vision targets 5 million annual arrivals and $ 8.5 to $ 10 billion in earnings by 2030.

Although the industry narrowly missed its 2024 target of 2.1 million arrivals – closing the year with over 2.05 million tourists – it registered the third highest arrivals Sri Lanka ever recorded, highlighting the resilience of the private-sector-led industry amidst local and global challenges.

In November 2024, Sri Lanka Tourism Chairman Buddhika Hewawasam announced that it is set to unveil a unified national brand this month instead of going ahead with campaign taglines, aiming to redefine the country’s global tourism appeal and achieve a higher return on investment (RoI).

“We plan to finalise the creative assets for the new campaign by December 2024, with the full-scale rollout set for January and peak promotional activities scheduled for May 2025,” he said

With steady growth in key markets, a vision for expansion, and a brand launch for global appeal, industry leaders remain positive about reclaiming its position amongst the top travel destinations in the world.

The tea industry in Sri Lanka witnessed notable growth in 2024, marked by a rise in the National Tea Sales Average (NSA) across all elevations. This upward trend was reflected in both Rupee and Dollar terms, demonstrating strong market demand and favorable pricing dynamics.

Tea Industry Growth in 2024

The NSA for 2024 closed at Rs. 1,225.17 ($4.08), an increase of Rs. 53.88 and $0.49 from the previous year’s averages of Rs. 1,171.29 and $3.59, respectively, according to Forbes and Walker Tea Brokers. December 2024 wrapped up the year with a monthly average of Rs. 1,184.82 ($4.08), showing a month-on-month rise of Rs. 47.60 ($0.17) compared to November.

However, it registered a marginal year-on-year decline of Rs. 1.59, despite a notable gain of $0.43 in Dollar terms, underscoring the influence of currency fluctuations.

The year-end overall average of $4.08 highlighted steady international demand, led by Low Grown teas, which contributed $4.34. High Grown and Medium Grown teas also experienced positive momentum.

December 2024 capped the year with a monthly average of Rs. 1,184.82 ($ 4.08), an increase of Rs. 47.60 ($ 0.17) from November.

 However, this marked a slight decrease of Rs. 1.59 year-on-year (YoY) compared to December 2023, despite a significant rise of $ 0.43 in Dollar terms over the same period. This highlights the impact of currency fluctuations and potential market dynamics influencing year-end performance.

In Dollar terms, the year-end overall average figure stood at $ 4.08 whilst showing an increase across the board, sustaining demand in international markets. It was also complemented by the highest contribution from Low Grown teas at $ 4.34, while High Grown and Medium Grown teas also showed positive trajectories.

High Grown teas averaged Rs. 1,141.63 ($3.80) in 2024, reflecting year-on-year increases of Rs. 69.15 and $0.52. Medium Grown teas achieved Rs. 1,064.48 ($3.55), up Rs. 52.13 and $0.45. Low Grown teas, the most lucrative segment, recorded Rs. 1,304.38 ($4.34), representing gains of Rs. 52.23 and $0.51 compared to 2023.

December 2024 revealed a distinct performance for each elevation. High Grown teas increased month-on-month by Rs. 35.27 to Rs. 1,128.16, while Medium Grown teas rose by Rs. 47.52 to Rs. 1,037.77. Low Grown teas remained the leader at Rs. 1,253.76, with a monthly increase of Rs. 62.03, though slightly below December 2023 levels by Rs. 24.32.

The tea sector’s strong performance underscores sustained demand in international markets and highlights the potential for further growth. Together, the tourism and tea industries position Sri Lanka for a prosperous 2025, leveraging its natural and cultural assets to drive economic development and global appeal.

New Government Targets High-End Tourism to Drive Growth this year

Sri Lanka’s tourism industry is making a strong start in 2025, with nearly 40,000 arrivals recorded in the first five days of the year—a notable increase from the same period in 2024.

 This growth has been driven largely by Russian tourists, followed by visitors from India and the UK. Daily arrivals have risen to 7,883, marking progress in the country’s recovery and growth.

Tourism Minister Vijitha Herath, speaking at the inauguration of an Ayurvedic resort in Bentara, emphasized the need for a balanced approach to tourism that prioritizes both quality and quantity of arrivals.

 Highlighting wellness tourism as a key focus, Herath called for the development of Ayurvedic treatments to attract affluent travelers seeking longer stays.

He stated that elevating service standards, travel experiences, and innovative offerings will be critical in positioning Sri Lanka as a high-end destination.

Herath also acknowledged challenges in the industry, such as visitors misusing tourist visas for business purposes or overstaying.

He proposed fostering permissible business opportunities through partnerships and joint ventures to attract investment while mitigating illegal activities.

These initiatives, he noted, could create local jobs, promote cultural exchange, and ensure tourism benefits extend to rural areas.

Sri Lanka Tourism has set ambitious goals for 2025, aiming to attract 3 million visitors and generate $5 billion in revenue. By 2030, the vision is to reach 5 million annual arrivals and $8.5 to $10 billion in earnings.

Although the industry fell slightly short of its 2024 target of 2.1 million arrivals, closing the year with 2.05 million visitors, this represents the third-highest annual total ever recorded.

In November 2024, Sri Lanka Tourism Chairman Buddhika Hewawasam announced plans to launch a unified national tourism brand to redefine the country’s global appeal.

This branding initiative, aimed at achieving a higher return on investment, is set to roll out in January 2025, with peak promotional activities scheduled for May.

Key markets such as Germany, Australia, the US, Poland, France, China, and the Netherlands also contributed to the industry’s positive trajectory.

With the introduction of the new national brand and continued growth in visitor numbers, Sri Lanka’s tourism leaders are optimistic about reclaiming the nation’s status as a top global destination.

By combining strategic initiatives, an emphasis on wellness tourism, and a focus on high-value travelers, Sri Lanka aims to strengthen its tourism sector, stimulate economic growth, and foster sustainable development.

In March 2023, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) introduced a comprehensive roadmap to guide businesses in adopting the International Sustainability Standards Board’s (ISSB) global sustainability disclosure standards.

This initiative reflects the nation’s commitment to aligning with global sustainability benchmarks and enhancing corporate transparency.

The roadmap emphasizes a phased approach, ensuring inclusivity for businesses of all sizes while addressing stakeholder needs.

As part of this initiative, CA Sri Lanka has launched awareness campaigns, formed strategic partnerships with government and donor agencies, and developed key resources to support the transition.

Two primary standards, SLFRS S1 (General Requirements for Disclosure of Sustainability-Related Financial Information) and SLFRS S2 (Climate-Related Disclosures), were officially adopted in January 2025.

Full implementation is planned by 2030. Initial compliance targets include the top 100 companies listed on the Colombo Stock Exchange (CSE) by market capitalization, starting in 2025.

By 2026, all main-board CSE-listed entities will need to comply, with subsequent phases expanding to other listed entities and companies based on turnover thresholds. By 2030, even Empower Board-listed companies will be required to meet these standards.

To prepare for this transition, CA Sri Lanka began conducting awareness sessions in 2023, initially targeting key stakeholders.

These efforts were scaled up in 2024, with local and international experts delivering training sessions to deepen understanding of the new standards.

 Additionally, the institute will introduce a readiness maturity assessment model and an Application Guideline book in early 2025 to offer businesses practical guidance and best practices for seamless implementation.

A bi-monthly Greenhouse Gas (GHG) emission certification program has also been launched to help businesses comply with reporting requirements.

 CA Sri Lanka plans to assess the adoption progress of the top 100 listed companies by mid-2025 and will recognize outstanding performance in sustainability reporting at the annual TAGS awards ceremony.

CA Sri Lanka President Heshana Kuruppu emphasized the significance of this initiative in building trust and transparency through reliable sustainability-related financial disclosures.

“This is not just a response to global trends but a commitment to creating long-term value for stakeholders. The roadmap provides Sri Lankan companies with the tools and guidance they need to meet international sustainability standards seamlessly,” he stated.

Through these strategic efforts, CA Sri Lanka is positioning the country’s businesses to thrive in an increasingly sustainability-driven global economy, ensuring Sri Lanka remains competitive and aligned with international expectations.

Sri Lanka is actively exploring ways to channel foreign earnings into local investments as part of its efforts to revitalize the economy.

One major initiative in this regard is a newly launched entrepreneurship development scheme that aims to empower returning migrant workers to reinvest their hard-earned savings into local businesses.

This move is designed to harness the financial resources of migrant workers, many of whom have accumulated savings from their overseas employment.

The Sri Lanka Bureau of Foreign Employment (SLBFE) unveiled a financial assistance programme totaling Rs.744.75 million.

This grant will be distributed across all 331 Divisional Secretariats in the country, ensuring that the support reaches a broad base of returning migrants.

The primary goal is to provide financial backing for returnees interested in either starting new businesses or expanding existing ones.

The programme targets those who have already initiated business ventures upon returning to Sri Lanka, as well as new entrepreneurs seeking to venture into the business world.

Focus on Job Creation and Export-Oriented Ventures

The scheme places a strong emphasis on promoting businesses that focus on production and exports, recognizing their potential to generate both direct and indirect employment opportunities.

The SLBFE’s strategy is clear: fostering entrepreneurship at the Divisional Secretariat level, enabling migrant workers to transform their savings into business enterprises that contribute to the local economy and job market.

To qualify for the grants, applicants must meet specific criteria, including having completed at least two years of overseas employment.

 Additionally, they must either have a solid plan to start a new business or continue running an existing one. The applications will be assessed by a Feasibility Evaluation Committee, which will evaluate the viability of the proposed business ventures before awarding the grants.

Financial Support Tiers

The SLBFE has outlined different grant tiers based on the investment size. For businesses with investments ranging between Rs.200,000 and Rs.500,000, there will be three available grants worth Rs.250,000 each per Divisional Secretariat.

 For investments between Rs.500,000 and Rs.1,000,000, a single grant of Rs.500,000 will be awarded per division. Businesses with investment plans exceeding Rs.1,000,000 are eligible for a larger grant of Rs.1,000,000.

This financial support is aimed at helping returnees transform their business ideas into tangible economic contributions.

The Dehiwala Zoo has reported the passing of its last remaining orangutan, a 15-year-old animal that succumbed to a sudden illness.

Zoo authorities stated that the cause of death is yet to be determined, and the orangutan’s body has been sent to the University of Peradeniya for a detailed examination. The findings from this analysis are expected to provide insights into the illness and inform the zoo’s future care practices.

The loss marks a significant moment for the Dehiwala Zoo, emphasizing the importance of conservation and enhanced care for endangered species in captivity.

President Anura Kumara Dissanayake held a comprehensive discussion with officials from the Ministry of Finance today (7) at the Presidential Secretariat. The meeting addressed key economic concerns, including vehicle imports, withholding tax, and the digitalization of Value-Added Tax (VAT) collection.

Vehicle Imports

The President stressed the importance of balancing the challenges related to vehicle imports with the country’s financial constraints and economic priorities. He called for a strategic approach to manage the issue while ensuring minimal strain on Sri Lanka’s recovering economy.

Withholding Tax Refunds

Addressing the concerns of retirees, President Dissanayake underscored the necessity of creating a mechanism to refund withholding taxes deducted from individuals not liable for income tax. He emphasized that such measures would provide much-needed relief to senior citizens.

VAT Digitalization

President Dissanayake announced plans to digitize VAT collection processes to enhance transparency and efficiency. The proposed digital system is expected to improve tax compliance and significantly boost revenue generation.

Optimism for Economic Recovery

The President expressed confidence in Sri Lanka’s progress towards economic recovery and stability. He reiterated the government’s commitment to optimizing the benefits extended to citizens despite prevailing challenges.

The meeting was attended by Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance Mahinda Siriwardana, Central Bank Governor Dr. Nandalal Weerasinghe, Senior Advisor to the President Duminda Hulangamuwa, and senior officials from the Ministry of Finance.

The Committee on Public Finance held its inaugural meeting yesterday (6) under the leadership of Member of Parliament Dr. Harsha de Silva, who was recently appointed Chair by the Committee of Selection in accordance with Parliamentary Standing Orders.

In his opening address, Dr. de Silva provided an overview of the Committee’s functions and its past work, followed by an open discussion involving Committee Members and attending officials.

During the session, Ministry of Finance Secretary Mahinda Siriwardena and Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe presented the Mid-Year Fiscal Position Report 2024 and an analysis of recent economic developments along with future outlooks. The Committee subsequently approved the report.

The Committee also recognized Dr. Weerasinghe’s contributions to economic recovery and congratulated him on being named LMD’s ‘Sri Lankan of the Year.’

Additionally, the Committee reviewed and approved the Annual Work Programme of the National Audit Office – 2025, with provisions for potential revisions if necessary.

The meeting saw participation from Deputy Ministers Harshana Suriyaperuma and Chathuranga Abeysinghe, alongside Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, Shanakiyan Rasamanickam, Dr. Kaushalya Ariyarathne, Arkam Ilyas, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon, and Lakmali Hemachandra. Parliament Assistant Secretary General Hansa Abeyratne also attended the proceedings.

The Election Commission of Sri Lanka has announced its intention to initiate legal proceedings against candidates who failed to submit their income and expenditure reports for the 2024 General Election.

In a statement released yesterday (7), the Commission revealed that it had directed all District Election Offices to finalize and submit files concerning these non-compliant candidates to the Police. This measure aims to facilitate prompt legal action.

The decision follows repeated failures by certain candidates to comply with the mandatory requirement to submit financial reports, despite the extended deadlines. According to the Election Expenditure Regulation Act, all candidates—whether representing political parties, independent groups, or included in national lists—must submit their income and expenditure reports to their respective Election Commission offices.

The Election Commission stated that preparations are underway to file cases next week against five Presidential election candidates who have similarly failed to meet the reporting requirements. This follows prior legal action already initiated against seven other Presidential candidates for the same offense.

The Commission emphasized its commitment to enforcing the Act, which grants it the authority to take legal measures against candidates who fail to adhere to these financial disclosure obligations. It also reiterated the importance of compliance to uphold transparency and accountability in the electoral process.