ADB funding to catalyse SL’s sustainable tourism development

• Package aims at uplifting Sri Lanka’s tourism sector with strategic policy reforms and targeted catalytic investments
• Project to support sector governance improvements, enhance private sector participation and boost tourist arrivals and foreign exchange earnings among other areas
• Funding for Sustainable Tourism Sector Development Programme consists of a concessional loan of US $ 70mn and a regular loan of US $ 30mn from ADB
• “Through appropriate policy and institutional reforms, infrastructure enhancements and improved sector resilience against internal and external shocks, tourism can become engine of inclusive economic growth”- ADB Country Director for Sri Lanka Takafumi Kadono

Sri Lanka’s fast reviving tourism sector is slated to receive a fresh boost with the Asian Development Bank (ADB) approving a US $ 100 million financing package.

The package aims at uplifting Sri Lanka’s tourism sector with strategic policy reforms and targeted catalytic investments, which align with the country’s National Tourism Policy.

The project would support sector governance improvements, enhance private sector participation and boost tourist arrivals and foreign exchange earnings and address the infrastructure gap, while strengthening product development and high-end destination marketing, the ADB said issuing a statement yesterday.

The funding for the Sustainable Tourism Sector Development Programme consists of a concessional loan of US $ 70 million and a regular loan of US $ 30 million from the ADB.

“Although Sri Lanka’s tourist arrivals in 2025 returned to 2018 levels, earnings have remained below the pre-pandemic figures,” said ADB Country Director for Sri Lanka Takafumi Kadono. 

“Through appropriate policy and institutional reforms, infrastructure enhancements and improved sector resilience against internal and external shocks, tourism can become the engine of inclusive economic growth.”

This programme will support policy and institutional reforms across multiple areas of the sector including governance, asset management, tourism promotion and marketing, skills improvement and digitalisation and sustainable tourism and urban development in two major tourism destinations, namely Dambulla (including Sigiriya) and Trincomalee.  

The programme will help diversify the sector by promoting untapped tourism areas including marine tourism, opening up new destinations, increasing tourist stay and spend and creating an enabling environment for increased women’s participation in the sector.

The ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. 

Working with its members and partners to solve complex challenges together, the ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure and safeguard our planet. Founded in 1966, the ADB is owned by 69 members—50 from the region.  

Jaffna among Lonely Planet’s top 25 cities to visit in 2026

Jaffna has been named as one of the 25 best cities to visit in the world in 2026 by global travel publisher Lonely Planet.

The recognition marks a major milestone for Sri Lanka, reaffirming its international appeal as a destination rich in culture and heritage.

Lonely Planet’s selection of Jaffna highlights the city’s cultural and historical significance and reflects Sri Lanka’s efforts to promote regional diversity in tourism.

The Italian edition of Lonely Planet’s Best in Travel 2026 was launched at a press conference in Milan on October 22.  The Consulate General of Sri Lanka in Milan, representing the Sri Lanka Tourism Promotion Bureau, took part in the event and showcased traditional cuisine from the Northern province.