The Asian Development Bank (ADB) has approved a $100 million financing package to boost Sri Lanka’s tourism sector through strategic policy reforms and targeted investments aligned with the National Tourism Policy. The initiative aims to strengthen sector governance, enhance private sector participation, and address infrastructure gaps while promoting product development and destination marketing to increase tourist arrivals and foreign exchange earnings.
The Sustainable Tourism Sector Development Program will be financed through a $70 million concessional loan and a $30 million regular loan. The project focuses on making tourism a driver of inclusive economic growth by improving policy and institutional frameworks, building sector resilience, and creating a foundation for sustainable, high-value tourism.
ADB Country Director for Sri Lanka, Takafumi Kadono, noted that while tourist arrivals in 2025 matched pre-pandemic levels, earnings have not yet recovered. He emphasized that strategic reforms and infrastructure improvements will be crucial to revitalizing the sector and ensuring long-term growth.
The program will support reforms in governance, asset management, tourism promotion and marketing, skills development, digitalization, and sustainable urban development. Two major tourism destinations—Dambulla (including Sigiriya) and Trincomalee—will be key focus areas for infrastructure and capacity-building efforts.
By diversifying tourism through new areas such as marine tourism and opening untapped destinations, the program aims to extend visitor stays, increase spending, and promote gender inclusion by encouraging women’s participation in the sector. The initiative underscores ADB’s ongoing commitment to fostering inclusive, sustainable, and resilient economic growth across Asia and the Pacific.
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