ECONOMYNEXT – Sri Lanka’s foreign exchange revenue from tourism rose to $181 million in September, rising 18.9 percent compared to the same month last year, the central bank said, quoting tourism promotion authorities.
The revenue in the September last year was $152.2 million.
The revenue in the first nine months of 2024 have jumped 61.2 percent to $2.35 billion compared to $1.46 billion in the same period last year, the data showed.
The arrivals also has picked up throughout the year with number of foreign visitors to Sri Lanka rose 9.1 percent to 122,140 in September 2024 compared to a year ago, while the arrivals have jumped 46.1 percent to 1.48 million in the first nine months of the year, compared to the same period last year.
Sri Lanka expects an ambitious 2.3 million tourist arrivals in 2024 with a $5 billion revenue for the whole year.
Sri Lanka’s peak tourism season starts in November and goes until early March.
Tourism accounted for nearly 5 percent of Sri Lanka’s economy when the sector was at its peak in 2018. Since then, it has been hit by violent Easter Sunday suicide attack in 2019 and Covid-19 pandemic in 2020 followed by an unprecedented economic crisis.
Tourist arrivals and revenue from tourism were expected to have a boost after the new government led by President Anura Kumara Dissanayake resumed a previous visa process as per the Supreme Court rule.
The arrivals and revenue started to slow down after a new on arrival visa system through VFS Global. After the new system, foreign visitors who were earlier permitted to obtain a visa free of charge are compelled to pay a $21.61 fee for VFS Global.
The island nation’s leisure industry protested the complex website which is putting off some users as well as higher fees.
The Supreme Court of the country halted the new visa system temporarily after opposition parties filed a case citing failure to follow proper tender process.
Former President Ranil Wickremesinghe’s government has approved a ‘one chop system’ similar to Singapore for 38 countries with visa-free entry to Sri Lanka from last month, but the move needs the parliament approval.
That approval can be obtained only after the new parliament is elected through November 14 general elections.
The tourism earnings figure is estimated from a survey conducted by the Sri Lanka Tourism Development Authority.
Sri Lanka’s imports and the merchandise trade deficit have gradually picked up as tourism earnings came in and people in the sector spent the wages and other earnings. (Colombo/October 05/2024)