Will US trade tariffs impact Sri Lanka’s tourism sector?

Deputy Minister of Tourism Prof. Ruwan Ranasinghe says government does not anticipate the newly imposed US reciprocal tariffs to have a prolonged negative effect on Sri Lanka’s tourism sector.

Speaking at a government media conference on Wednesday (09), the Deputy Minister said Sri Lanka is focusing on attracting up-market tourists to the island, whose spending power will not be greatly affected by the tariffs. 

Commenting further, the Deputy Minister expressed: “In the long term we need to consider how long US will go on with these tariffs. Considering tourism, [Sri Lanka’s] emerging market is India. We have designed a campaign now. We will start that very soon targeting the top market of India.”

“We are planning not to continue mainly focusing on numbers, but the revenue per tourist. So, 3 million to 4 million tourists could be fine as long as we could enhance the revenue earned per tourist.”

Prof. Ranasinghe also noted that there will be an impact over the disposable income of individuals followed by these tariffs imposed, adding that still the top market category will be fine. 

“We are gradually looking at it, while improving and developing the tourism product of the country, to reach to the up markets”, he added.

The Deputy Minister of tourism also commented on the increasing investments towards Sri Lanka’s tourism sector, stating, “There is a clear increase in terms of investments to the tourism sector. In 2024, we have received nearly USD 40 million in investments to the sector. If you take last three months, we have secured nearly USD 25 million so far.”