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Monday, October 3, 2016


Economic Environment The Sri Lankan tourism industry is one of the fast emerging industries of the economy with average annual revenue of US $ 500 million at present. It is the sixth largest foreign exchange earner in Sri Lanka. It has created employment for about 125,000 persons. At present, nearly half a million tourists visit the country every year. Sri Lanka has exotic sandy beaches, large greeneries, historical artifacts, and a good climate, spectacular landscape in the highlands, a rich biodiversity and friendly and welcoming people. These distinctive opportunities will be utilized to develop the tourism industry as a major growth sector in the development of the economy. In present Sri Lanka has achieved a high growth in tourism industry with the current political stability as well as the opening of the North and East to tourist. Today Sri Lanka tourism contributes enormously to the Sri Lankan economy. Because after the end of the civil war in 2009, Sri Lanka witnessed a strong upsurge in tourism.  The government’s vision is to transform Sri Lankan tourism sector, by 2020, to be the largest foreign exchange earner in the economy; position Sri Lanka as the world’s most treasured and Greenest Island and attract high spending tourists while preserving the country’s cultural values, natural habitats and environment.  The government has targeted 2.5 million tourists by 2016 and room capacity of about 45,000 to meet this target. This sector is also expected to receive investments in excess of US$ 2 billion in the medium term in areas of luxury hotels, high quality residencies and high end shopping malls.  The Government recognizes the multiplier effect of tourism development in creating employment opportunities and distribution of wealth through a variety of economic activities predominantly in the SME sector, taking the advantage of SMEs being able to link micro enterprises from one side and large scale corporate sector on the other side. Some of the key objectives to be achieved through the 5 year strategy are as follows:


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