Tourism is a cornerstone of Sri Lanka’s economy, contributing approximately 12% to GDP and supporting hundreds of thousands of jobs. This report explores the direct, indirect, and induced effects of tourism on economic development, employment, and foreign exchange earnings.
In 2024, tourism generated $1.5 billion in revenue with visitors spending an average of $181 per day. Accommodation, food services, and transportation capture the largest share of tourist spending.
The sector directly employs over 200,000 people and supports an additional 300,000 jobs indirectly through supply chains and related industries.
While tourism’s direct GDP contribution is 2.5%, its total impact reaches 12% due to strong linkages with agriculture, construction, and services.
Tourism drives infrastructure improvements and supports rural economies through community-based initiatives and SME development.
Understanding these dynamics helps policymakers and stakeholders maximise tourism’s benefits while ensuring sustainable and inclusive growth.