Sri Lanka Bets on Six Markets to Hit $4.2 Billion Tourism Target

COLOMBO, Aug 19 (Reuters) - Sri Lanka is launching a six-country tourism promotion campaign to nearly double arrivals during its peak winter season and earn $4.2 billion, an official said on Wednesday, as the island nation seeks to boost a crucial foreign exchange earner.   

The largely digital promotions will focus on key source markets Australia, China, Germany, the UK, Russia and India ahead of Sri Lanka launching a long-delayed global promotion campaign in April 2027, said Roshan Ranasinghe, deputy minister of tourism.

"Tourism is crucial for our economy. After the delay of nearly a decade this global campaign is to take Sri Lanka to the world, to crucial markets, and to give a realistic idea of what is available in Sri Lanka," he told reporters at a briefing in Colombo.  

Tourism is the third-largest foreign exchange earner in the country of 22 million, famed for its pristine beaches, ancient temples and aromatic tea. Sri Lanka recorded 1.3 million arrivals in the first seven months of this year after experiencing about a 20% decline in March and April due to the Gulf crisis. Tourism earnings were $1.5 billion at the end of July, latest government data showed.

The island subsequently revised its initial target of 3 million arrivals to 2.7 million and is expecting $4.2 billion in revenue. Sri Lanka earned $3.2 billion from tourism in 2025.

Sri Lanka, which imports all its fuel, has struggled with soaring energy costs from the Iran war, which have increased prices by about 35% since March, prompting fuel rationing and the declaration of Wednesdays as public holidays. 

Tourism dollars are also crucial for the island to boost its foreign exchange reserves, which stood at $6.6 billion at the end of last month. The Central Bank of Sri Lanka raised its key policy rate by 100 basis points to 8.75% in May, partly to reduce pressure on the rupee.      

(Reporting by Uditha Jayasinghe; Editing by Chizu Nomiyama )