Business
Sri Lanka’s tourism paradox: More visitors, less money
Sri Lanka’s tourism industry is posting arrival numbers that many destinations would envy, yet it is increasingly troubled by a disconcerting trend: the country is welcoming record numbers of visitors, but tourism earnings are struggling to keep pace.
In May, Sri Lanka recorded its highest-ever monthly increase in tourist arrivals, welcoming 145,745 visitors, a 10% rise from a year earlier. However, tourism revenue fell 5.1% year-on-year to US$155.7 million, according to official data. For the first five months of 2026, earnings declined 12% to US$1.36 billion, despite continued growth in arrivals.
“These figures highlight a growing challenge for a country that depends heavily on tourism as a source of foreign exchange: attracting more tourists is no longer enough. The bigger question is how much they spend once they arrive,” a leading hotelier told The Island Financial Review.
“After being battered by the 2019 Easter Sunday attacks, the COVID-19 pandemic, and the 2022 economic crisis, Sri Lanka recorded a historic 2.36 million visitors in 2025. Authorities are now targeting 3 million arrivals in 2026. But beneath those anticipated numbers lies a more complicated story,” he said.
Elaborating further, he noted: “Tourism revenue reached roughly US$3.2 billion in 2025; only marginally higher than the previous year, despite a 15% jump in arrivals. More tellingly, earnings remain significantly below the levels achieved in 2018, when visitor numbers were comparable. So, the decline in average tourist spending has become impossible to ignore.”
According to official surveys, average daily tourist expenditure has been revised downward to approximately US$148 per day, compared with previous estimates exceeding US$170.
Referring to this trend, he added: “Destinations such as the Maldives attract substantially higher per-visitor spending through luxury tourism, premium experiences, and high-end accommodation. The debate should increasingly revolve around whether Sri Lanka is pursuing the right tourism model.”
For years, the country focused on boosting arrival numbers through aggressive marketing campaigns, Instagram influencer partnerships, and social media promotions. As a result, Sri Lanka may now be attracting too many budget-conscious travellers while failing to draw those seeking immersive, higher-value experiences rooted in the nation’s natural and cultural assets. “Are we grappling with the tension between ‘high-volume tourism’ and ‘high-value tourism’?” he asked. “Sri Lanka must encourage longer stays, diversify experiences beyond beaches and cultural sites, and develop premium offerings in wellness, eco-tourism, adventure, luxury rail, culinary, and wildlife sectors if it hopes to increase per-visitor spending.”
An inbound travel operator concurred, stating that the future should depend less on bringing in more people and more on attracting the right mix of travellers.
Against this backdrop, Sri Lanka appears to be intensifying efforts in key source markets. One of the most notable initiatives took place recently in Moscow, where Deputy Tourism Minister Prof. Ruwan Ranasinghe led a delegation to the sixth “Let’s Travel International Tourism Forum.” Discussions with Russian officials focused on direct flights, simplified visa procedures, destination promotion, and stronger bilateral tourism cooperation.
Russian travellers have become increasingly important to Sri Lanka’s tourism sector. Russia consistently ranks among the island’s top source markets, alongside India and the United Kingdom. In early 2026 alone, tens of thousands of Russian visitors arrived in Sri Lanka, underscoring the market’s growing significance. The Moscow forum also signalled a broader strategy: expanding beyond traditional hubs and reaching travellers across multiple Russian regions.
“The island’s beaches, wildlife reserves, ancient cities, tea-country landscapes, and wellness traditions already provide a strong foundation, and Sri Lanka has largely solved the problem of attracting visitors. Its next challenge is more difficult: transforming a popular destination into a high-value one. That will require investment in infrastructure, premium tourism products, transport connectivity, destination management, and visitor experiences that encourage travellers to spend more and stay longer,” the inbound operator said.
Tourism Minister Vijitha Herath recently told parliament that the current revenue figures reflect more accurate measurement methodologies rather than a collapse in spending. Referring to this, the hotelier said,” While that may be a technically valid assertion, it does little to mask a far more pressing reality: Sri Lanka is no longer attracting the high-spending travellers it once did. The data, when viewed alongside declining average daily expenditure and stagnant overall earnings, points to a structural shift in the country’s visitor profile, one that favours volume over value. Until Sri Lanka recalibrates its tourism strategy to prioritise quality over quantity, it risks becoming a destination that everyone visits but few truly invest in.”
By Sanath Nanayakkare
Business
ComBank hands over fully refurbished wards at De Soysa Hospital for Women
The Commercial Bank of Ceylon recently handed over Wards No. 03 and 04 of the De Soysa Hospital for Women, after the completion of a comprehensive renovation project launched in March this year to mark International Women’s Day.
Wards 03 and 04 handle a substantial share of the hospital’s patient load, and account for approximately 2,500 to 3,000 deliveries and 4,000 to 5,000 admissions annually. Their refurbishment was designed to significantly enhance patient care, safety and comfort, and directly benefit thousands of mothers and newborns.
Five Trustees of the Commercial Bank’s Corporate Social Responsibility Trust participated in the formal handing over of the refurbished wards to the hospital authorities. They were Sharhan Muhseen, the Bank’s Chairman, Raja Senanayake, Deputy Chairman, Sanath Manatunge, Managing Director/CEO, Hasrath Munasinghe, Chief Operating Officer, and Prasanna Indrajith, Chief Financial Officer.
Established in 1879, the De Soysa Hospital for Women is the first maternity hospital in Sri Lanka and the second oldest in Asia and is credited with, among others, performing the country’s first caesarean section in 1905 and establishing one of its earliest organised operating theatres in 1907.
The Commercial Bank’s Corporate Social Responsibility Trust, through which this project was implemented, has via its healthcare-related interventions supported more than 100 government hospitals with essential equipment and infrastructure, contributed to emergency medical services through the ‘Adopt an Ambulance’ initiative, and implemented targeted community health interventions such as water storage solutions for families affected by kidney disease.
Business
IIHS expands global nursing pathways
The International Institute of Health Sciences (IIHS) Multiversity is expanding its international education programmes with the aim of creating overseas employment opportunities for Sri Lankan nurses and allied health professionals while contributing to foreign exchange earnings.
Speaking to the media during a conference at IIHS Multiversity in Kerawalapitiya, Dr. Kithsiri Edirisinghe, CEO, Co-Founder and Dean of IIHS aid that the institute has established academic partnerships with overseas universities and higher education institutions, including the University of Surrey in the UK, Deakin University in Australia, Metropolia University of Applied Sciences in Finland, Asia e University in Malaysia and SUNY Canton in the United States.
Under its ‘Study in Sri Lanka, Graduate to the World’ model, students can complete foundational and diploma-level qualifications locally before progressing to international top-up degrees or overseas employment.
Dr Edirisinghe said the model could substantially reduce the cost of obtaining internationally recognised qualifications. It estimates that completing a four-year bachelor’s degree at the University of Surrey in the UK would cost about USD 145,700, including tuition and living expenses, compared with about USD 27,750 through the IIHS pathway in Sri Lanka.
Dr Edirisinghe said the institute’s focus on overseas deployment addressed both Sri Lanka’s economic needs and the growing global demand for healthcare workers.
“Our winning model is producing job-ready, registration-ready healthcare professionals who can seamlessly enter foreign healthcare systems,” he said.
IIHS, which began operations in 2002 as the American College of Health Sciences, established its institutional base in Welisara in 2008 and launched its purpose-built greenfield multiversity campus in 2023.
The institute said it has upgraded the qualifications of more than 5,000 government nurses, supported over 2,500 youth on international employment pathways and trained more than 1,000 allied health professionals. It has also carried out over 250 community health projects.
The institute has identified Germany and Japan among its target markets, with pathways planned for 2,000 nurses for Germany and a one-year preparation programme linked to around 4,000 healthcare positions in Japan.
Dr. Renuka Jayatissa, Vice-Chancellor and a specialist medical doctor, said demographic changes and the growing burden of non-communicable diseases were changing healthcare requirements in Sri Lanka.
Business
Sampath Bank launches Sri Lanka’s first community-powered book discovery platform at Colombo International Book Fair
Sampath GPay customers can enjoy 25% cash back on Book Fair purchases
Sampath Bank PLC has launched Sampath Book Finder, Sri Lanka’s first community-powered book discovery platform, giving visitors to the Colombo International Book Fair a faster and more seamless way to find the books they are looking for across the fair’s 150+ stalls, while also opening up new opportunities to discover titles recommended by fellow readers.
Introduced on the opening day of the Colombo International Book Fair on 25 September, Sampath Book Finder brings together digital innovation and the collective knowledge of readers to address a familiar challenge at one of Sri Lanka’s largest literary gatherings, where the scale of the fair can make locating a particular title a time-consuming exercise. When a book proves difficult to locate, visitors can access bookfairtracker.com or scan the designated QR code and submit a request to the community, allowing readers who have already spotted the title to share its location and help others find it without having to search stall after stall.
Commenting on the initiative, Milinda Weerasinghe, Chief Marketing Officer, Sampath Bank PLC, said, “At Sampath Bank, we believe meaningful innovation begins by identifying everyday challenges and creating solutions that make a real difference. Sampath Book Finder brings this thinking to the Colombo International Book Fair by turning the collective knowledge of readers into a real-time digital solution, empowering them to find what they are looking for, discover something new and help others do the same, while making the overall experience more convenient and connected.”
The platform also turns book discovery into a shared experience, allowing visitors to recommend books they encounter by sharing the title, publisher, hall and stall number, which enables fellow readers to discover sought-after titles and recommendations while making it easier to locate them within the fair.
Sampath Bank’s longstanding association with the Colombo International Book Fair also continues in 2026, marking more than 20 years of partnership, with the Bank serving as the Official Banking Partner for this year’s fair. As part of its presence at the event, SampathCards offer 25% cashback for Sampath GPay customers on their purchases and 3 months 0% instalment plans for book purchases via Sampath credit cards, while visitors can also access banking services through the Bank’s physical presence at the fair. Customers registering to open selected Fixed Deposits at the premises will receive an additional 0.25%, adding further value and convenience for visitors.
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