Lower daily spend keeps Sri Lanka tourism revenue in check

• February tourism earnings dipped 4.9% YoY to US$ 352mn

Sri Lanka’s tourism earnings in February 2026 dipped 4.9 percent year-on-year to US$ 352 million, the Central Bank reported, marking the sixth decline in eight months despite a surge in arrivals. The fall comes after authorities revised down daily spending per tourist to US$ 148 from US$ 171 in August last year, a move that has kept overall revenue muted even as the sector records record arrivals. February saw 279,328 tourists, up 16.3 percent from a year earlier, underscoring the disconnect between visitor numbers and revenue growth. Tourism continues to be a key contributor to the island’s economy, representing nearly 3 percent of GDP. 

Officials remain optimistic, targeting three million arrivals for 2026, aiming to build on last year’s record revenue of US$ 3.22 billion, a 1.6 percent increase from 2024, driven by a 15.1 percent jump in visitor numbers to 2.36 million.

The figures are based on surveys conducted by the Sri Lanka Tourism Development Authority (SLTDA), which have adjusted daily tourist spending following updated assessments of visitor behaviour. 

Although arrivals are climbing, lower per-capita expenditure is tempering the sector’s contribution to foreign exchange inflows.