Multi-pronged strategy unveiled to hit US $ 8bn tourism target; aviation receives major lift

• Rs.3.5bn for destination development projects that highlight nature and historical heritage
• Budget includes an allocation of Rs.1.3bn specifically for tourism promotion and city branding

The government has outlined a comprehensive, multi-tiered strategy in its Budget 2026 to achieve the ambitious targets of four million tourist arrivals and US $ 8 billion in earnings by 2030, positioning the sector as a vital pillar of economic recovery.

In his Budget Speech, President Anura Kumara Dissanayake emphasised the need for a holistic approach beyond just institutional restructuring.

“In addition to strengthening institutions, it is essential to continue investing in infrastructure development, human resource development and conducting an integrated marketing and advertising campaign to achieve the goals of various sectors of the tourism industry,” he stated.

A key component of this strategy involves diversifying tourism offerings. The government has allocated Rs.3.5 billion for destination development projects that highlight nature and historical heritage. Specific initiatives include developing coastal and marine environments in the Western province, such as the Hamilton Canal and Negombo Lagoon and transforming the Haputale area—including Beragala and Idalgashinna—into a major tourist destination by improving infrastructure and publicity. 

Additionally, Rs.2.5 billion has been earmarked to develop the Beira Lake into a central attraction in Colombo, enhancing its productive use across social, economic and environmental aspects.

To ensure these destinations are competitive globally, the government is ramping up its promotional efforts. The budget includes an allocation of Rs.1.3 billion specifically for tourism promotion and city branding. 

However, while Dissanayake highlighted the need for an integrated marketing and advertising campaign, he did not specify the timelines for when the new nation branding or the much-delayed global tourism promotional campaign would finally be rolled out.

Recognising that seamless connectivity is paramount for tourism expansion, the budget tightly links these developments with a significant upgrade to the aviation sector. Stating that the promotion of domestic flights is essential for industry growth, the government has allocated Rs.1,000 million to develop domestic airports in Sigiriya and Trincomalee and to expand operations at Jaffna International Airport. Development work on Hingurakgoda Airport is also slated for completion in 2026.

On the international front, aiming to realise the vision of Sri Lanka as a leading international transit hub, the stalled expansion project at Bandaranaike International Airport (BIA) will resume in the first quarter of 2026, with financial facilities from the JICA.

To streamline visitor entry, Rs.458 million is earmarked for the initial development and establishment of advanced scanner system for BIA.

To address acute capacity shortages, the government is also focusing on human resources and underutilised assets. With an estimated 800,000 skilled personnel required by 2030, Rs.500 million will be utilised to bridge the workforce gap through short-term vocational training programmes via the Sri Lanka Institute of Tourism and Hotel Management. 

Furthermore, over 900 underutilised government-owned tourist bungalows and resorts located in high-attraction areas have been identified for development into income-generating units, with private sector support, to meet the accommodation needs. 

(NF)