Famous for its pristine beaches, ancient temples and Ceylon Tea, tourism is Sri Lanka’s second-largest foreign exchange earner with US$3.2 billion in revenues in 2025.

The tourist arrival target, which is an ambitious 27% increase over the previous year, will help Sri Lankans recover from Cyclone Ditwah, which hit the island nation at the end of November killing 645 people, said Vijitha Herath, minister of foreign affairs and tourism.

Torrential rains and hundreds of landslides damaged over 110,000 houses as well as key roads, railroads, and bridges causing US$4.1 billion in damage according to World Bank estimates.

Growth, which was projected at 3.1% for 2026, was reduced to 2.9% by the International Monetary Fund (IMF) in December. An IMF delegation is expected in Colombo this month to conduct the fifth review of a US$2.9 billion program with Sri Lanka.

“We are proud that Sri Lanka still managed to record the highest-ever tourism numbers. We are hopeful that tourism revenue will also continue to grow and this will help our economy at a crucial time,” Herath told reporters.

Sri Lanka is also eyeing about US$500 million in investment in the tourism sector in 2026 after attracting US$329 million from 126 projects last year, said Buddhika Hewawasam, Chairman, Sri Lanka Tourism Development Authority.