News Today: How the growth of tourism and remittances in Sri Lanka 2025 boosts economic recovery

Sri Lanka is showing signs of strong economic resilience, with the World Bank’s South Asia Development Update (October 2025) highlighting a significant rise in tourism and remittances. According to the report, the country’s real output is expected to return to its 2018 level by 2026, driven largely by the growth of services, especially tourism and foreign worker remittances.

In September 2025, Sri Lanka reported its highest-ever tourist arrivals for the month, welcoming 158,971 visitors, a 30.2% increase compared to September 2024. Over the first nine months of the year, total arrivals reached 1,725,494 tourists, reflecting a renewed global interest in Sri Lanka as a travel destination.

Remittances have also surged. Official figures from the Central Bank showed that remittances grew by 25.2%, reaching US$ 695.7 million in September 2025. From January to September 2025, total remittances increased to US$ 5.81 billion, marking a 20% year-on-year rise. This stronger-than-expected performance has helped ease external financing pressures and stabilize the economy.

Sri Lanka’s economy grew by 4.9% in Q2 2025, continuing steady growth since late 2023. Inflation declined between September 2024 and July 2025 due to lower energy prices, currency appreciation and reduced household demand. Although prices have slightly risen since August, inflation remains low. The Central Bank’s easing of monetary policy has improved profitability in the financial sector and contributed to record-high stock market performance.

Additionally, the report highlights rapidly rising demand for AI-related skills, with Sri Lanka among the top in South Asia in AI job exposure due to its skilled workforce.