Sri Lanka tourism faces promotional delays and declining per-visitor revenue

Sri Lanka’s tourism sector is facing dual challenges regarding promotional delays and declining revenue per visitor. President Anura Kumara Dissanayake revealed that an international tourism promotion campaign has been delayed for 18 months due to outdated government procurement procedures. The President noted that current regulations, designed for physical goods, are ill-equipped to evaluate creative services and ideas. Consequently, the Sri Lanka Tourism Authority now expects to call for tenders in January 2027, though smaller-scale initiatives have begun in five countries.

Simultaneously, the industry is experiencing a paradox where record-high tourist arrivals are not translating into proportional economic gains. While visitor numbers are surging, the average spend per tourist is falling. This trend is attributed to an increase in budget travelers, a rise in low-cost accommodation, shorter visitor stays, and economic leakages where spending flows out of the country through foreign-owned services and overseas booking platforms.