Sri Lanka’s Tourism Earnings Decline 4.9% in February Despite Rise in Visitor Arrivals

Colombo, The Gulf Observer: Sri Lanka’s tourism earnings declined by 4.9 percent year-on-year in February 2026, reaching US$352 million, according to data released by the Central Bank, marking the sixth drop in the past eight months despite a notable increase in tourist arrivals.

The decline follows a revision by authorities to the average daily spending per tourist, which was lowered to US$148 from US$171 in August last year. The adjustment has contributed to subdued revenue growth even as the tourism sector records rising visitor numbers.

In February, 279,328 tourists visited Sri Lanka, representing a 16.3 percent increase compared to the same period last year, highlighting a growing gap between the number of visitors and overall tourism revenue.

Tourism remains a vital sector for Sri Lanka’s economy, contributing nearly 3 percent to the country’s gross domestic product (GDP) and serving as a key source of foreign exchange.

Despite the recent decline in monthly earnings, officials remain optimistic about the sector’s outlook. The government has set a target of three million tourist arrivals for 2026, aiming to build on last year’s record tourism revenue of US$3.22 billion, which represented a 1.6 percent increase from 2024.

The record revenue in 2025 was largely supported by a 15.1 percent rise in visitor arrivals, which reached 2.36 million tourists during the year.

The latest revenue estimates are based on surveys conducted by the Sri Lanka Tourism Development Authority (SLTDA). These surveys revised the average daily tourist spending following updated assessments of visitor behaviour and expenditure patterns.

While tourist arrivals continue to rise steadily, lower per-capita spending is moderating the tourism sector’s overall contribution to Sri Lanka’s foreign exchange inflows, posing a challenge for policymakers seeking to maximize economic benefits from the growing number of visitors.