ECONOMYNEXT – Sri Lanka’s Minister of Foreign Affairs and Tourism Vijitha Herath invited the island nation’s expatriates to bring in new investment into the tourism industry citing the country now has both economic and political stability.
The Minister invited Sri Lankan expatriates when he participated in the groundbreaking ceremony of the AUREUM luxury hotel complex under an investment of Luxembourg which was delayed due to COVID-19 pandemic.
“I pointed out that businesses that were closed due to the Corona pandemic are reopening under new investors due to the economic and political stability that has emerged in the country,” he said in a statement.
“Last year, we led the tourism industry to a major milestone, and as a result, European investments have come to Sri Lanka.”
“The reopening of this tourism industry project after many years of closure is a positive step for the country. Therefore, I kindly invite all Sri Lankans living abroad to bring new investors to the country.”
Sri Lanka’s tourism industry, long a vital pillar of the economy as the third-largest foreign exchange earner before the crises, suffered devastating blows from the COVID-19 pandemic. The leisure industry virtually halted international arrivals in 2020–2021.
The 2022 economic crisis with sovereign default dented the industry further with fuel shortages, power outages, inflation peaking to nearly 70 percent, and widespread protests that deterred visitors and caused travel advisories.
Tourist arrivals plummeted from a pre-pandemic peak of 2.33 million in 2018 with a revenue of $4.4 billion to just over 700,000 in 2022 with only $1.1 billion in earnings, compounded by earlier setbacks like the 2019 Easter Sunday attacks.
Recovery began accelerating in 2023 with relaxed import restrictions for the sector, visa-free policies for key markets including India, Russia, and China, aggressive global promotion, and IMF-backed stabilization measures that eased inflation and rebuilt reserves.
Arrivals surged to a record high of 2.36 million visitors in 2025 with over $3.2 billion in earnings despite Cyclone Ditwah’s late-2025 disruptions.
Investment into the country’s leisure industry has rebounded modestly but remains cautious, with foreign direct investment in hotels and infrastructure limited in 2022 due to construction shocks and investor pullbacks.
The government, under President Anura Kumara Dissanayake since late 2024, has prioritized tourism for forex inflows and job creation, targeting 3 million arrivals in 2026 through infrastructure upgrades, sustainable development, and incentives, positioning the sector as a key driver of post-crisis economic resilience amid ongoing challenges like infrastructure gaps and global competition. (Colombo/January 20/2026)