Business

Sri Lanka aims to welcome 3 million tourists by 2026, a senior official announced on Monday. This goal follows a record 2.36 million visitors last year as the nation works to increase income and recover from Cyclone Ditwah. Known for its beautiful beaches, historical temples, and Ceylon Tea, tourism is Sri Lanka's second-largest source of foreign income, generating $3.2 billion in 2025. The new target represents a bold 27% rise compared to the previous year and is intended to assist Sri Lankans in bouncing back from the aftermath of Cyclone Ditwah, which struck the country at the end of November, resulting in 645 fatalities, according to Vijitha Herath, the Minister of Foreign Affairs and Tourism. The cyclone brought heavy rains and caused numerous landslides, damaging over 110,000 homes and critical infrastructure like roads, railways, and bridges, leading to an estimated $4.1 billion in losses, as reported by the World Bank. The International Monetary Fund (IMF) had initially projected growth at 3.1% for 2026, but revised it down to 2.9% in December. An IMF team is set to arrive in Colombo this month for the fifth review of a $2.9 billion program with Sri Lanka. "We are proud that Sri Lanka achieved the highest tourism numbers ever. We are optimistic that tourism income will keep increasing, supporting our economy during this important time," Herath told the press. Additionally, Sri Lanka is looking to attract about $500 million in tourism investments in 2026, following $329 million generated from 126 projects last year, according to Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Development Authority.