Economic View

Sri Lanka experienced robust tourism growth in 2011 with a growth of 45.7% in tourism receipts over that in 2010; the country recorded US$840 million in tourism receipts in 2011 as compared to US$576 million in 2010. The Sri Lankan government had set a target of achieving 750,000 tourist arrivals in 2011; not only did the country achieve the target but it more than doubled the targeted 15% growth, with a year-on-year growth of 31% in tourist arrivals. 

                                                                         The country is experiencing continued growth in 2012 as well, with the first half of the year achieving a growth of 19% over that in the first half of 2011. The government has set the target of achieving 1.5 million tourist arrivals in 2012. HVS believes that this target is optimistic; assuming the growth trend of the first six months to continue (19% over last year), we expect the country to just cross the 1 million tourist arrivals mark in 2012. Figure 2 highlights the tourist arrivals and year-on-year growth trends from 2006 to 2011. Figure 3 highlights the month-on-month growth in tourist arrivals from January to June 2012, as compared to the same months in 2011

(Harshana Madushanka)