Sri Lanka clocks 900,000 tourists, eyes millions more with casino appeal
Sri Lanka’s tourism sector has reached a significant milestone in 2025, surpassing 900,000 international arrivals as hopes grow around hitting its ambitious year-end target of three million tourists and $5 billion (€4.6 billion) in revenue.
According to the , the milestone was reached on 1 May 2025, with the arrival of 6,311 tourists pushing the total for the year to 903,105. The pace of arrivals reflects a notable improvement compared to 2024, when this threshold was crossed only by June.
As of 4 May 2025, total arrivals stood at 917,406. The first four days of the month alone saw 20,522 tourists enter the country, suggesting early signs of positive momentum for the second quarter. The SLTDA projects 165,118 tourist arrivals for May, aiming to revitalise monthly growth after a sluggish start to the year.
Still missing the targets?
Despite achieving strong results, Sri Lanka failed to meet its monthly tourist targets from January to April 2025. In fact, none of the months have surpassed the 250,000 mark since February 2025.
However, May’s early numbers have renewed industry optimism. India continues to lead as the most significant source market, followed by the United Kingdom and China. Together, these countries account for a significant part of arrivals and are critical to sustaining tourism growth through 2025. Industry officials believe that maintaining strong inflows from these markets will be key to achieving overall targets.
“This is a crucial period for us,” a senior SLTDA official told local media. “Although the first quarter was slower than expected, we’re seeing encouraging signs as we head into the middle of the year.”
Casino push to draw tourists
Tourism remains a vital pillar of Sri Lanka’s economy, especially as the country works to recover from recent economic instability and attract more foreign exchange. The government is also placing increased emphasis on improving visitor safety, infrastructure, and international perception.
An emerging factor in Sri Lanka’s tourism recovery is the growth of its casino and gaming sector, which is fast becoming a key draw for regional tourists. Indian nationals now account for around 18 percent of all tourist arrivals, a key demographic targeted by new integrated resort developments.
Projects like the City of Dreams Sri Lanka, led by Melco Resorts, are expected to generate up to $250 million (€230 million) in annual gross gaming revenue. Meanwhile, Sri Lanka’s gambling market is projected to grow from $293.9 million (€270 million) in 2020 to over $410 million (€377 million) by 2026.
With ten new casino licences under review and a new gaming regulator in place, Sri Lanka aims to attract high-spending tourists and position itself as a more accessible alternative to destinations like Macau.
