Sri Lanka’s tourism sector is roaring back in 2025, positioning the island as a rising star in sustainable travel. After years of crises, from the 2019 Easter attacks to the COVID-19 lockdowns and a 2022 economic upheaval, the country has engineered a remarkable recovery and strategic repositioning. Garnering global accolades, such as being named among BBC Travel’s Top 25 places to visit in 2025, Sri Lanka is now celebrated for its efforts that benefit local communities, protect the environment, and preserve cultural heritage.

This article examines Sri Lanka’s recovery and rise as a sustainable tourism destination, highlighting key milestones and offering insights relevant to the hospitality and tourism sector. Insights are drawn from interviews conducted with senior tourism executives at ITB Berlin 2025 and supported by data from the Sri Lanka Tourism Development Authority (SLTDA).

At ITB Berlin: Monash University Industry Researchers (from left: Wanshi Xing, the author, and Yi Ling, fourth from left) with Buddhika Hewawasam (Chairman, Sri Lanka Tourism Promotions Board, third from left) and Chinthana Duminduhewa (Sustainable Tourism Initiatives, far right)

From Recovery to Reinvention

Post-COVID Recovery

Sri Lanka’s post-pandemic tourism recovery has been swift and strategic, bouncing back faster than many expected.

“Over the past four years, we had to rebuild twice… By 2022–2023, the situation gradually improved, and last year, political stability was restored,” recalled Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Promotions Bureau (SLTPB), in an interview at ITB Berlin 2025.

This resilience is reflected in the numbers: Sri Lanka welcomed 2,053,465 visitors in 2024, a 38% increase from 2023, bringing the country close to its pre-crisis peak of 2.3 million in 2018. Tourism earnings hit US$3.17 billion in 2024 (up 53% year-on-year), providing a much-needed boost to the economy.

The government has set ambitious targets, aiming for 3 million arrivals and $5 billion in revenue in 2025, up from about $2.05 billion and $2.1 billion in 2023. This goal reflects a shift in strategy: rather than simply restoring volume, Sri Lanka is repositioning toward higher-value tourism and sustainable growth.

Note: All visitor economy data has been referenced from reports published by the Sri Lanka Tourism Development Authority.

At ITB Berlin in March 2025, Sri Lanka’s pavilion buzzed with optimism. “Sri Lanka doesn’t have competitors; it is a unique country… a small island [that] offers a wide range of tourism experiences,” said Chinthana Duminduhewa, a sustainable tourism expert and academic, highlighting the nation’s rich wildlife, culture, and adventure offerings.

Such confidence underscores why Sri Lanka stands out in 2025. The country has positioned itself as a diverse and high-quality destination, leveraging sustainability as a key competitive edge.

Market Diversification

Key source markets have been vital to the rebound. Regional travel has surged thanks to eased entry rules. Sri Lanka even announced visa-free entry for select countries (including India) in late 2024 to spur impromptu trips. India reclaimed its position as the top source of visitors, with over 416,000 arrivals in 2024 (approximately 20% of the total), as Indian travelers take advantage of easy access and short-haul affordability.

Europe also bounced back with the UK and Germany together contributing over 300,000 tourists, drawn by Sri Lanka’s cultural sites and nature parks. An influx of Russian visitors, nearly 202,000 in 2024, made Russia the second-highest market, as Sri Lanka benefited from Russians seeking alternatives to Western destinations.

“Our biggest markets are returning… Indian tourists continue to visit, although their stays are short. European markets remain strong, with many from the UK and Germany,” noted Chairman Hewawasam.

He added that Australia is an important segment (particularly surfing holidays during Easter) and that Chinese travelers, a pre-pandemic mainstay, are slowly reappearing. China accounted for about 6.4% of arrivals in 2024 (131,681 visitors), and Sri Lanka is actively courting them with targeted marketing and planned flight routes.

This diversified market mix, comprising India, Europe, Russia, China, and Australia, is helping Sri Lanka reduce its over-reliance on any single country and focus on quality segments, such as surfers, cultural enthusiasts, and nature travelers.

Sri Lanka’s recovery has been guided by a focus on “quality over quantity.”

“Sri Lanka follows a unique tourism model. Unlike some other destinations, we do not focus on mass tourism; instead, we cater to high-value travelers. The quality of experiences here is very high,” explained Chairman Hewawasam.

This philosophy is steering the post-COVID rebound, rather than chasing record numbers at any cost. The country is rebuilding a resilient, upmarket brand that can command higher spending per visitor while preserving the very assets that make it attractive.

Sustainable Tourism Strategies and New Offerings

At the heart of Sri Lanka’s strategy is its commitment to sustainable tourism. The government and industry stakeholders have doubled down on eco-conscious initiatives and authentic experiences, recognizing that sustainability is not just an ethical choice but a competitive differentiator.

In 2024, Sri Lanka achieved a notable milestone by certifying Sigiriya, the ancient rock fortress site, as the country’s first “Sustainable Destination” under a new national program.

This certification, endorsed by the Global Sustainable Tourism Council (GSTC) and its international partners, ensures that tourism in Sigiriya adheres to rigorous standards in environmental protection, community benefits, and cultural preservation. It signals Sri Lanka’s broader strategy to develop model sustainable destinations that can be replicated nationwide, with several provinces already looking to follow Sigiriya’s lead.

In parallel, over 200 local businesses have joined the “Good Travel” program for sustainability, and a dedicated Sustainable Tourism Unit now guides industry efforts. These steps demonstrate the country's commitment to institutionalizing eco-conscious practices.

*Aerial shot of Sigiriya’s rock fortress. Source: Adobe Stock.*

On the product development front, Sri Lanka is leveraging its rich natural and cultural endowments to create new sustainable offerings. From rainforest treks to agro-tourism in tea country, the emphasis is on experiences that immerse visitors in the local nature and culture while benefiting the surrounding communities. The hospitality sector is seeing growth in eco-lodges and luxury camps that blend comfort with conservation.

“For sustainability, [we need] luxurious eco-lodges and glamping locations that have little environmental effect, offering immersive natural experiences in national parks like Yala and Sinharaja,” said Manil De Silva, Manager at Holidays by Design (a Sri Lankan tour operator), outlining his vision for new products during the interview at ITB 2025.

Already, upscale tented camps near Yala National Park and rainforest ecolodges in Sinharaja are drawing high-end visitors seeking wildlife encounters with minimal footprint.

Sri Lanka is also capitalising on its wellness tourism potential, given the island’s rich Ayurvedic heritage and numerous yoga retreats set in serene landscapes. This aligns with global trends of travelers seeking health, nature, and authenticity, niches where Sri Lanka excels.

Equally important, sustainability in Sri Lanka extends to community and heritage. Much of the tourism strategy involves empowering local entrepreneurs and preserving cultural sites. The UNESCO-listed treasures (from ancient cities like Anuradhapura to colonial Galle Fort) are maintained with an eye on both tourist experience and heritage conservation.

BBC Travel praised Sri Lanka’s approach of using tourism to uplift local communities and safeguard heritage in the face of overtourism elsewhere. This has helped the country build an image as a responsible destination, which not only appeals to conscientious travelers but also secures tourism’s long-term viability.

The focus on sustainability is also paying marketing dividends. Sri Lanka was recently named the world’s most family-friendly country for 2025 in one report, and even the most popular solo travel destination in another, indicating broad confidence that the island is safe, welcoming, and appealing for all types of travelers.

Connectivity and Investment: Laying the Foundations for Growth

Sri Lanka’s quest to become a regional tourism leader has been bolstered by strategic developments in aviation, transport infrastructure, and investment. Recognizing that better accessibility—both international and domestic—is key to growth, authorities and private players have taken steps to improve connectivity.

Air transport is a focal point: Colombo’s Bandaranaike International Airport is expanding services, and global airlines are ramping up routes.

For example, Emirates added an extra daily flight from Colombo to Dubai in January 2025, and Cathay Pacific boosted its Colombo–Hong Kong flights from three to five per week by March 2025, clear signs of rising demand and confidence in Sri Lanka as a destination. The national carrier, SriLankan Airlines, along with Middle Eastern partners (Qatar Airways, Emirates, and Etihad), continues to carry the bulk of traffic, but new players are entering the market.

In May 2025, a startup airline, Air Ceilão, is set to launch, targeting regional routes like Dubai and Singapore with affordable fares. This new entrant marks a significant push to revitalize Sri Lanka’s aviation sector, enhance competition, and ultimately establish direct connections to Europe and Australia.

“To increase tourist and business travel, I believe greater focus should be placed on new international airlines… and expanding direct flights from important markets,” argued De Silva, emphasizing aviation as a top development priority (ITB 2025 interview).

However, challenges remain. As of early 2025, direct flights from China have not fully resumed, and aircraft supply constraints are slowing expansion. The government is working to address these hurdles, understanding that better connectivity to key markets (India, China, Europe, and Australia) will be crucial for hitting its tourism targets.

On the ground, transport and infrastructure upgrades are also underway. Sri Lanka has invested in new expressways that cut travel times between the capital and popular tourist sites.

A network of highways is gradually expanding. “They have a plan for some highways and have already finished half,” noted Duminduhewa, improving access to emerging regions like the north and east of the island.

The country’s famed scenic railways and ubiquitous tuk-tuks continue to provide charm, but modern buses and upgraded trains are being introduced to enhance the tourist experience. Internally, the focus is on making it easier for visitors to explore the island’s diverse attractions, from hill country to coastline, comfortably and sustainably.

*The Kandy-to-Ella Mountain train ride. Source: Adobe Stock.*

Tourism investment has also seen a boost, signaling confidence in Sri Lanka’s prospects. Both local and foreign investors are financing new hotels, resorts, and attractions. Several international hotel chains have opened or announced properties since the COVID-19 pandemic, including high-end brands catering to the booming Indian outbound market.

“Some international brands (such as Shangri-La, Marriott, Hilton, Intercontinental, Hyatt, and Anantara) are already investing in Sri Lanka… high-end hotel chains expanding their presence here, including properties catering to the Indian market,” Chairman Hewawasam observed.

Notably, investment is not confined to Colombo. There is a deliberate push to develop tourism hubs beyond Colombo, such as in Jaffna and Trincomalee, bringing more regions into the tourism economy.

Meanwhile, local entrepreneurs are opening boutique hotels, surf camps, and eco-farms, encouraged by government incentives and a rebound in tourist spending. Currently, about one-third of tourism investment comes from the private sector, and authorities aim to increase this share by streamlining regulations and ensuring new projects align with the national sustainable tourism strategy.

The recent return to political stability has further improved investor sentiment. “Our country is still recovering from economic crises… [but] now everything is good. We are putting ecotourism regulations into effect, encouraging ethical travel, and creating lesser-known vacation locations,” said De Silva, referencing reforms by Sri Lanka’s government since late 2024 (ITB 2025 interview).

These developments in connectivity and infrastructure lay a strong foundation for Sri Lanka’s tourism renaissance, ensuring that growth is both inclusive and future-proof.

Competing on the Global Stage: Sri Lanka vs. Regional Destinations

In repositioning itself, Sri Lanka is inevitably compared with other Asian destinations, but it is carving its own path. Thailand and Vietnam, for instance, are two Southeast Asian powerhouses that rebounded spectacularly in 2024.

Vietnam welcomed a record 17.5 million international tourists in 2024, nearly regaining its pre-pandemic volumes, and Thailand saw over 35 million visitors (about 87% of 2019 levels). These countries have aggressively pursued tourism growth by offering relaxed visa policies, extensive marketing, and substantial investments in infrastructure.

By contrast, Sri Lanka’s scale is smaller (just over 2 million visitors in 2024), but it is leveraging its size to offer more boutique and sustainable experiences.

“Similar places, like Thailand and Bali… now Vietnam is also becoming a big competitor,” remarked Hashan Cooray, Marketing Director at Jetwing Hotels, acknowledging the stiff competition from Asia’s top spots (interview at ITB 2025).

These destinations compete for tourists from China, India, and Europe, and indeed, Sri Lanka has felt the pressure. For example, when Asian travel reopened post-COVID, Thailand’s head start in welcoming Chinese travelers (coupled with Sri Lanka’s 2022 financial crisis) meant that many Chinese chose Thailand over Sri Lanka. Similarly, Vietnam’s surge has set new benchmarks in air connectivity and luxury offerings that Sri Lanka must aspire to achieve.

*Monash University Industry Researchers with Hashan Cooray (Jetwing Hotels)*

However, Sri Lanka’s strategy isn’t to outpace Thailand or Vietnam in volume, but rather to differentiate itself based on value, authenticity, and sustainability.

Industry leaders often emphasize that Sri Lanka’s diversity within a compact area is unparalleled. Within a few hours’ drive, a visitor can go from whale watching on the coast to hiking in misty mountains, or from exploring ancient temples to spotting elephants on safari. This is a range of experiences that is hard to match elsewhere in South Asia.

India, its giant neighbor, attracted around 9.5 million foreign tourists in 2023, leveraging its iconic landmarks and vastness. However, Sri Lanka offers a more manageable and focused experience. The country also has a stable tourism policy, whereas some Indian states vary widely in terms of quality and sustainability-led practices.

The Maldives, another competitor in the Indian Ocean, surpasses Sri Lanka in luxury resort appeal. However, those resorts exist in isolation. In contrast, Sri Lanka’s appeal lies in a holistic journey through culture, nature, and people, rather than a single-resort stay.

“Thailand, maybe… is competitive to us in some aspects. We are trying to make some difference between Thailand and us,” noted De Silva, indicating Sri Lanka’s conscious effort to set itself apart.

That difference lies in promoting authentic experiences and sustainable growth over mass tourism.

As a result, Sri Lanka is increasingly perceived not just as a value-for-money beach destination (as it was decades ago in the backpacker circuit), but as a high-quality, conscious travel destination. This repositioning is bearing fruit in international markets that prize sustainability.

For instance, European tourists (who make up ~50% of arrivals) appreciate the island’s efforts to limit overtourism and protect heritage sites.

Sri Lanka is punching above its weight, demonstrating how a mid-sized destination can lead the way with progressive tourism practices. The country’s ability to maintain this leadership will depend on continuing its current trajectory: investing in sustainability, training its workforce (a noted skills shortage exists in the hospitality sector), and marketing its unique story amid a crowded market.

Key Takeaways for the Global Tourism Industry

Sri Lanka’s journey offers valuable lessons for tourism executives and stakeholders worldwide. Key takeaways include:

Resilience through crisis.
Sri Lanka demonstrated that even after multiple shocks, a clear recovery plan and industry unity can restore tourism quickly. Building crisis resilience (both economic and operational) is essential for all destinations.
Quality over quantity.
By shifting its focus to high-value travelers and sustainable practices, Sri Lanka is aiming to avoid the pitfalls of mass tourism. A strategy of curating better experiences over sheer volume can lead to more enduring growth and enhanced brand value.
Sustainability as a competitive edge.
Investing in sustainable tourism (certifications, eco-sites, community projects) not only protects resources but also differentiates a destination. Sri Lanka’s recognition on global “best destinations” lists in 2025 was primarily due to its responsible tourism efforts, a clear sign that sustainability can be a marketing advantage.
Connectivity and accessibility.
Improving air connectivity (through new routes, carriers, and visa facilitation) is crucial for expanding source markets. Sri Lanka’s push for more flights and easier visas shows that ease of access drives recovery, a lesson relevant to any destination seeking growth.
Market diversification.
Sri Lanka balanced its visitor portfolio (India, Europe, Russia, China, etc.), which cushioned the impact of any one market’s downturn. Other destinations can learn from this diversification strategy to spread risk and tap emerging markets (e.g., Sri Lanka is eyeing markets like Belarus and Thailand as its next frontiers).
Public-private collaboration.
The coordination between Sri Lanka’s government (in terms of policy, promotion, and infrastructure) and the private sector (in terms of investment and product innovation) has been mission-critical. Aligning on a national tourism vision, in Sri Lanka’s case, a high-value model ensures that all stakeholders work towards common goals.

Sri Lanka’s rise as South Asia’s sustainable tourism leader in 2025 underscores that recovery is not just about returning to old ways but about moving forward with new and inclusive models. By prioritizing equitable strategic development, this small island nation is making a big statement on the global stage. The rest of the tourism world would do well to take note, and perhaps, take a page from Sri Lanka’s playbook as we navigate the future of travel.

Sources: Sri Lanka Tourism Development Authority reports; interview insights from ITB Berlin 2025 (with permission); international tourism news and data (UNWTO, World Bank); media releases and news articles from 2024 to 2025