Tourism earnings climb to US$ 1.54bn in first five months

• May tourism earnings up by 6.5% YoY to US$ 164.1mn

Sri Lanka’s tourism sector earned US$ 1.54 billion in the first five months of 2025, up 9.8 percent from the US$1.40 billion recorded a year ago, according to provisional data released by the Central Bank of Sri Lanka.
The increase comes on the back of a sustained recovery in arrivals, with the island welcoming 1.03 million tourists during the period, compared to 896,779 in the corresponding stretch of 2024.
The year began with a strong upswing in January, which posted US$ 400.7 million in earnings, the highest so far this year, marking a 17.2 percent jump from January 2024. Growth moderated in the subsequent months, with February and March seeing earnings rise by 6.3 percent and 4.6 percent year-on-year (YoY), respectively.
April and May, traditionally leaner months, also posted gains. Earnings in April rose 13.7 percent from a year earlier to US$ 256.7 million, while May recorded a 6.5 percent year-on-year increase, reaching US$ 164.1 million.
Although the performance reflects a clear upward trajectory, the pace of recovery remains steady rather than spectacular. When broken down month-on-month, the growth rates in early 2025, while positive, have not significantly accelerated compared to 2024, suggesting that while Sri Lanka is benefiting from a revival in international travel, it is yet to see the kind of rapid growth some of its regional peers are experiencing.
Tourism-dependent economies such as the Maldives have reported an 8 percent increase in tourist arrivals as of mid-May 2025. Conversely, Thailand has experienced a 2.7 percent decline in foreign arrivals in the first five months of the year.
Sri Lanka, while showing resilience, may need to further strengthen its competitive positioning in a region where traveller preferences are rapidly evolving and destination choices expanding.
Despite the uptick in earnings, the broader challenge lies in driving higher per capita spend and maintaining momentum beyond seasonal peaks.