ADB Approves $100 Million to Boost Sri Lanka's Tourism

The Asian Development Bank (ADB) has approved a USD100 million financing package aimed at revitalising Sri Lanka's tourism industry.

The funding is expected to provide a substantial lift to the country's fast-recovering sector, which is still working to maximise its financial potential post-pandemic.

The substantial package is structured to support key policy reforms and crucial investments, aligning with Sri Lanka's National Tourism Policy.

The ADB stated that the programme will strengthen sector governance, encourage private sector involvement, and work to increase both tourist arrivals and foreign exchange earnings. Additionally, it will address infrastructure needs, improve product development, and support high-end destination marketing.

The total financing is split into a USD70 million concessional loan and a USD30 million regular loan.

The programme will support policy and institutional changes across several areas, including asset management, sector promotion, skill development, and digitalisation.

Investments will also target sustainable tourism and urban development in two key destinations: Dambulla (including Sigiriya) and Trincomalee.

Furthermore, the initiative will aid in diversifying the sector by promoting areas like marine tourism and opening up new destinations, with the goal of increasing both the length of tourists' stays and their expenditure.

It also intends to create a better environment for women's participation in the industry.

ADB Country Director for Sri Lanka, Takafumi Kadono, highlighted the continuing challenge despite recovery in visitor numbers:

"Although Sri Lanka’s tourist arrivals in 2025 returned to 2018 levels, earnings have remained below the pre-pandemic figures."

He added that with appropriate support, tourism could become a key driver for broader economic progress.

"Through appropriate policy and institutional reforms, infrastructure enhancements and improved sector resilience against internal and external shocks, tourism can become the engine of inclusive economic growth.”

The Asian Development Bank is a multilateral development bank founded in 1966, owned by 69 members, supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.