Sri Lanka tourism grows with influx of 1.25 million tourists

Sri Lanka's tourism industry has recorded significant growth in 2024, with revenues for the first seven months of the year reaching nearly US$2 billion, thanks to an influx of more than 1.25 million tourists so far this year. 

The latest provisional figures from the Sri Lanka Tourism Development Authority (SLTDA) show that tourism receipts from January to July 2024 totaled more than US$1.88 billion, a 72 percent increase over the same period last year. 

However, the sector still faces a 38% shortfall compared to 2018 benchmark levels.

Revenues for the month of July were $328.31 million, a significant 117% increase from June 2024.February's $345.7 million was the highest monthly revenue for 2024 to date.

From January through July 2024, the average daily expenditure per visitor was $181.15 per day. 

SLTDA failed to meet projected arrivals compared to the previous month and has missed monthly targets for the entire year to date.

The average length of stay in July was the highest for the year at 9.65 days and the overall average length of stay for visitors was 8.53 days. The cumulative number of nights recorded was 10,219,443.

As part of its long term strategy to host 5 million tourists by 2030, the Sri Lanka Tourism Board hopes to increase the average expenditure per tourist to US$4,000, with 2.5 million of them spending more than US$500 per day, demonstrating its focus on attracting high-end tourists.

Sri Lanka's tourism industry recorded its highest growth rate of 46.1% in 2010 after ending a three-decade-long conflict, but showed a downward trend in the following years. 

However, positive growth of 26.7% in 2013 marked a turning point after a decade-long downward trend. Driven by recent successes and ambitious targets set for the coming year, the industry is now optimistic about the future.

Since the mid-April 2024 change in the visa regime, industry experts have expressed concern about falling revenues. They claim that the lack of implementation of the previous Electronic Travel Authorization (ETA) system, despite the Supreme Court's order for immediate implementation, has also been cited as a potential factor affecting revenues and arrivals.

Sri Lanka's tourism industry has set an ambitious target for 2024 to attract 2.3 million tourists and generate more than US$4 billion in revenue.

2. 15 hours water cut in several areas of Galle

The Batuantudawa area of Galle District in Sri Lanka has decided to suspend water supply for 15 hours today (12th).

As a result, water supply will be suspended from 1 pm today (12th) to 4 am tomorrow (13th).

According to reports, water supply will be suspended in Akmeemana, Poddala, Habaraduwa and Ahangama areas.

The island's Drainage Authority announced that it had decided to suspend water supply due to tank cleaning problems.

3.Investigation underway into fire on a ship in Sri Lanka's Colombo port    

Sri Lanka's Minister of Ports, Shipping and Aviation, Nimal Siripala de Silva, has called on Port Authority officials to launch an investigation into a fire that broke out on a vessel moored at the Colombo Port in the early hours of the (11) morning.

A sudden fire broke out on a vessel moored at the JCT4 jetty in the Colombo Port and the port fire department managed to extinguish the flames.

The vessel belonging to a Geneva, Switzerland based shipping company had arrived at the Colombo Port from Singapore.

According to the Port Authority, 995 containers were scheduled to be unloaded from the vessel while 880 containers were to be loaded.

4. Sri Lanka's remittances reach US$566.8 million in July

Sri Lanka's remittances from overseas workers continued to increase in July, providing a boost to the country's external sector. 

Last month, the country received US$566.8 million in foreign exchange from migrant workers, taking the total to US$3.71 billion for the first seven months of 2024. This represents an increase of 10.3 percent compared to the same period last year.

July's remittance inflow was significantly higher than the July 2023 figure of US$541 million and the June 2024 figure of US$519.6 million. This growth reflects a broader trend of increasing remittances, which are critical for strengthening Sri Lanka's external sector during the global economic recovery.

The external sector of the Sri Lankan economy, which plays a key role in the overall economy, has improved significantly over the past two years. This progress is largely attributed to a gradual recovery in remittance inflows and a rebound in tourism, as the global economy gradually stabilizes after the disruption caused by the New Crown epidemic. 

The recent improvement in remittance inflows was also linked to developments on the ground, with the country's renewed political and social stability allowing people to resume normal activities after the economic crisis. 

In addition, the decision of the Central Bank of Sri Lanka to float its currency in March 2022 played an important role in attracting more remittance inflows. This move, initiated by then Governor Ajith Nivard Cabraal, coupled with an increasing number of Sri Lankans seeking employment abroad since 2021, has led to a steady increase in remittances back home.