Sri Lanka's Economy
Tourism: Boom, Bombings and Recovery
How tourism grew after the civil war, crashed after the 2019 Easter bombings and the pandemic, and recovered by 2024-25.
Tourism is a key source of foreign exchange for Sri Lanka.
Post-war boom
Tourist arrivals grew rapidly after 2009, reaching over 2 million in 2018.
Shocks
- Easter Sunday bombings in April 2019 killed over 250 people in churches and hotels; tourism collapsed.
- COVID-19 in 2020 stopped travel almost entirely.
- The 2022 crisis deterred visitors.
Impact
Loss of tourism dollars contributed to the foreign exchange shortage that caused the 2022 crisis.
Recovery
Arrivals rebounded in 2023-24, passing 2 million again in 2024.
Attractions
Beaches, wildlife, tea country, ancient cities like Sigiriya and Buddhist heritage.
India’s role
India is the largest source of tourists to Sri Lanka.
After the 2019 bombings, a beach hotel in the south lost most bookings overnight, laying off staff who depended on tourist tips.
Bombings, pandemics and crises can wipe it out quickly.
- Tourism grew to over 2 million visitors by 2018.
- The 2019 bombings and pandemic collapsed tourism.
- Lost tourism dollars fed the 2022 crisis.
- Arrivals recovered by 2024; India is the largest source.
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