Sri Lanka at the Crossroads: Towards a Resilient, Responsible Tourism Future

A Nation Reawakening on World Tourism Day

On this World Tourism Day 2025, the world reflects on the transformative power of travel. For Sri Lanka, this reflection carries particular urgency. Tourism is not just another sector—it has long been a lifeline for foreign exchange, rural employment, community livelihoods, and cultural pride. Our island’s beauty, its warmth, its ancient civilization and living heritage, once propelled it to the global stage as a “must-see” destination.

At its peak in 2018, Sri Lanka welcomed 2.52 million international arrivals, generating nearly USD 5.6 billion in tourism receipts. Tourism accounted for over 12% of foreign exchange earnings and supported more than half a million direct and indirect jobs across hotels, restaurants, transport services, handicrafts, and agriculture. Entire coastal towns, from Negombo to Unawatuna, were transformed by this surge. Inland communities in Sigiriya, Kandy, and Ella saw new opportunities for guiding, homestays, and cultural performance.

Yet the dream was disrupted. The Easter Sunday attacks in April 2019 triggered a sudden 70% decline in arrivals, with monthly tourist inflows dropping from around 200,000 to fewer than 40,000. Just as recovery was underway, the COVID-19 pandemic struck, closing borders and halting air travel. In 2020, arrivals collapsed by more than 90%, and foreign exchange from tourism shrank to a fraction of its previous level. Families that had built livelihoods around the sector found themselves struggling for survival.

From that nadir, the past three years have been a slow but determined comeback. By 2022, Sri Lanka saw approximately 720,000 visitors, earning over USD 1.1 billion. By 2024, arrivals had climbed to just above 2.05 million, generating USD 3.17 billion, a 38% increase over the year before. In the first half of 2025 alone, more than 1.16 million tourists visited—an increase of over 15% compared to the same period in 2024. If current trends hold, Sri Lanka may surpass 3 million arrivals by year-end, potentially exceeding pre-crisis levels.

These figures give reason for hope. But as I reflect on my professional journey across Sri Lanka, Maldives, Zanzibar, Rwanda, the UAE, and Saudi Arabia, I see an even more important truth: growth alone is not enough. The real question is whether this recovery will become a resilient renaissance, or whether we will repeat old mistakes—chasing numbers, ignoring sustainability, and risking the very assets that make Sri Lanka unique.

The Hidden Risks Beneath the Recovery

Sri Lanka’s tourism revival is heartening, but several challenges remain entrenched beneath the surface. Unless addressed, they risk undermining long-term success.

1. Dependence on Mass Tourism

Too often, the measure of success is raw arrival numbers. While this brings short-term satisfaction, it exposes us to shocks—pandemics, global recessions, geopolitical tensions. It also risks overcrowding at sites like Sigiriya, Yala, and Mirissa, leading to degraded experiences and environmental strain.

2. Economic Leakage

Despite billions earned, a large share of the money flows out of Sri Lanka. International booking platforms, imported food and beverages, and foreign-owned resorts capture significant revenue. Studies suggest that in some cases, only 30–40% of each tourist dollar remains within local communities.

3. Pressure on Natural Assets

Our beaches, coral reefs, forests, and heritage sites are finite. Overuse, plastic waste, sand mining, reef damage, and unregulated development threaten them. If the resource base erodes, tourism’s long-term viability collapses.

4. Unequal Distribution of Benefits

Colombo, Galle, the Cultural Triangle, and southern beaches absorb the lion’s share of revenue. The North, East, and rural interiors remain underdeveloped in terms of tourism infrastructure and benefit-sharing. This regional imbalance worsens inequalities.

5. Infrastructure Gaps

From solid waste management to renewable energy, road connectivity, clean water, and skilled manpower, capacity gaps remain glaring. An increase from 2 million to 3 million tourists adds heavy strain on underprepared systems.

6. Climate Change Vulnerability

Sri Lanka ranks among the world’s most climate-vulnerable nations. Sea-level rise, coral bleaching, floods, landslides, and extreme heat directly threaten coastal resorts, wildlife parks, and cultural sites.

7. Weak Governance and Policy Fragmentation

Tourism governance remains fragmented across ministries and agencies. Policy changes often swing with political cycles, while long-term planning suffers. The absence of a National Tourism Master Plan with binding continuity leaves the industry vulnerable.

Guiding Principles for a New Model

As the world evolves, so must Sri Lanka. Our tourism must rest on sustainability, inclusivity, and resilience. International best practices show that countries can thrive with fewer, higher-yield visitors if they focus on conservation, authenticity, and quality.

Principles include:

Value over volume – Target higher-yield segments, not mass arrivals.
Community-first approach – Tourism must uplift host communities, not marginalize them.
Balanced ecosystems – Protect nature and heritage as non-negotiable assets.
Climate resilience – Embed adaptive infrastructure and green energy in all projects.
Integrated governance – Align ministries, agencies, private sector, and civil society under a shared roadmap.
Authenticity – Celebrate our culture and people, rather than mimic other destinations.

Global and Local Case Studies

To illuminate these lessons, let me highlight seven case studies, spanning Sri Lanka and beyond, that illustrate what works—and what pitfalls to avoid.

1. Rwanda – The Gorilla Economy

Rwanda restricted gorilla trekking permits, priced them high, and invested proceeds in conservation and community development. Gorilla numbers rebounded, while Rwanda positioned itself as a premium eco-destination.

Lesson: Sri Lanka could adopt a similar approach for whale-watching in Mirissa or leopard tracking in Yala—high-quality, low-volume, conservation-first.

2. Galápagos Islands – Strict Regulation Saves Ecosystems

By controlling visitor numbers, charging high conservation fees, and enforcing tight rules, Ecuador preserved the fragile ecosystems of the Galápagos.

Lesson: Sri Lanka must regulate Pigeon Island, Hikkaduwa reef, and Trincomalee diving zones. Without carrying capacity limits, our reefs risk collapse.

3. Yellowstone National Park, USA – Managing Footfall

Yellowstone implemented shuttle systems, zoning, and visitor education to balance access with conservation.

Lesson: Sigiriya and Yala need similar interventions—timed entry, alternate trails, visitor education centers, and technology-driven crowd management.

4. Andaman Islands, India – The “Four Rs” Approach

Hotels in the Andamans embraced Reduce, Reuse, Recycle, Rethink, cutting ecological footprints while enhancing branding.

Lesson: Sri Lankan resorts should adopt mandatory green certifications, rainwater harvesting, renewable energy, and zero-waste programs.

5. Yala National Park, Sri Lanka – A Warning Sign

Yala attracts over 156,000 visitors annually but suffers from overcrowding, vehicle congestion, and habitat disturbance.

Lesson: Entry caps, revenue-sharing with local villages, and investment in alternative wildlife sites are urgent.

6. Phang Nga Bay, Thailand – Controlling Marine Tourism

Authorities had to limit boat tours to prevent coral damage and over-tourism.

Lesson: Mirissa whale-watching, Trincomalee dolphin tours, and Pasikudah boat trips must adopt quotas, eco-boat standards, and seasonal restrictions.

7. Maldives – Community-Based Guesthouses

Beyond luxury resorts, local guesthouses allowed Maldivian islanders to directly benefit from tourism.

Lesson: Sri Lanka’s North and East could replicate this, empowering communities to run guesthouses, cultural trails, and homestays with proper training and accreditation.

A Roadmap for Sri Lanka

I propose a three-phase roadmap over the next decade.

Years 0–3: Foundations

Pilot 3–5 model zones (e.g., Arugam Bay, Sigiriya, Jaffna Islands) with strict sustainability rules.
Introduce green certification for all new hotels.
Launch community tourism funds with transparent revenue-sharing.
Strengthen training in guiding, languages, conservation, and hospitality.

Years 4–7: Expansion

Scale up carrying capacity management across all national parks and heritage sites.
Develop wellness, agritourism, spiritual, and creative arts segments.
Introduce tourism-climate resilience bonds to fund green infrastructure.
Enforce plastic-free tourism zones and renewable energy mandates.

Years 8–10: Consolidation

Position Sri Lanka globally as a regenerative tourism hub.
Achieve 70% local retention of tourist spending.
Ensure all heritage and nature zones operate within capacity limits.
Secure international recognition for Sri Lanka’s sustainability leadership.

Safeguards and Ethical Priorities

Carrying capacity enforcement with technology.
Community benefit audits before approving projects.
Transparent conservation funds from entry tickets and park fees.
Protection of artisan rights under intellectual property law.
Climate adaptation embedded in coastal and wildlife tourism projects.
Non-discrimination and dignity, in line with ICCPR laws.
Ethical marketing that avoids greenwashing or cultural exploitation.

Measuring Success

By 2030, Sri Lanka’s success should be measured not just in visitor numbers, but in:

Average revenue per visitor (higher than today’s USD 1500 per capita spend).
Percentage of spending retained locally (target 70%).
Community satisfaction surveys across host regions.
Carbon footprint per visitor, measured and reduced annually.
Visitor satisfaction and repeat rate, reflecting authentic experiences.
Health of ecosystems—coral cover, water quality, wildlife numbers.

A Personal Note on World Tourism Day

As I write this, I recall walking barefoot in rural Zanzibar villages, guiding eco-lodge strategies in Rwanda, and working with resort planners in the Maldives. The lesson has been consistent: tourism is not about numbers—it is about balance.

Sri Lanka stands at a crossroad. The recovery is real, but the opportunity to redefine our model is even greater. If we act with foresight, we can position our island as a beacon of sustainable, regenerative, and inclusive tourism. If we do not, we risk losing not only competitiveness, but also the very essence of what makes us special.

Disclaimer

This article has been authored and published in good faith by Dr. Dharshana Weerakoon, DBA (USA), based on publicly available data from cited national and international sources including Sri Lanka Tourism Development Authority, Central Bank of Sri Lanka, global tourism monitors, and conservation agencies, in addition to decades of professional experience across multiple continents and ongoing industry insight. It is intended solely for educational, journalistic, and public awareness purposes to stimulate discussion on sustainable tourism models. The author accepts no responsibility for any misinterpretation, adaptation, or misuse of the content. Views expressed are entirely personal and analytical, and do not constitute legal, financial, or investment advice. This article and the proposed model are designed to comply fully with Sri Lankan law, including the Intellectual Property Act No. 52 of 1979 (regarding artisan rights and design ownership), the ICCPR Act No. 56 of 2007 (ensuring non-discrimination and dignity), and relevant data privacy and ethical standards.

✍ Authored independently and organically through lived professional expertise—not AI-generated.

Further Reading: https://www.linkedin.com/newsletters/outside-of-education-7046073343568977920/

Additional Reading: https://gray-magpie-132137.hostingersite.com/sri-lankan-hotels/