Sri Lanka’s Tourism Industry Pins Hopes on New President to Rebuild Fortunes

GALLE, Sri Lanka – As Sri Lanka prepares for its first presidential election since the country’s economic collapse, the nation’s tourism sector is hoping the new president will help steer the industry toward recovery. Once a booming destination, Sri Lanka’s tourism industry was hit hard by the 2022 financial crisis, compounded by the earlier effects of the COVID-19 pandemic.

Businesses like Dairy King, an ice-cream shop in Galle Fort, are still struggling to return to pre-pandemic levels. “We haven’t been able to get back the pre-Covid business,” said owner Tariq Nassim, whose business was crippled when the crisis led to shortages of essential goods.

The upcoming election, scheduled for September, is seen as a critical turning point for the Indian Ocean nation. Tourism, a vital contributor to the country’s foreign exchange and GDP, made up 2.5 percent of GDP in 2023. The country aims to welcome 2 million tourists and generate US$3 billion in revenue by 2024.

Industry leaders have called for the new president to focus on strengthening regulations, improving facilities, streamlining visa processes, and ensuring the safety of tourists. Candidates, including incumbent Prime Minister Ranil Wickremesinghe and opposition leader Sajith Premadasa, have pledged various approaches to reviving the sector.

Wickremesinghe has proposed infrastructure upgrades to double tourist arrivals within five years, while Premadasa has emphasized cutting red tape and improving safety measures. Marxist candidate Anura Kumara Dissanayake has also promised direct flights and support for mid-level businesses in tourism.

“We need growth,” said Shiran Fernando of the Ceylon Chamber of Commerce. “Restructuring debt and improving reserves keep stability but don’t drive growth.” The tourism sector is closely watching the outcome, hoping the next president will prioritize rebuilding one of Sri Lanka’s most important industries.