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flag Sri Lanka's tourism grew in volume but lost revenue due to lower spending, poor guide regulation, and strain on infrastructure.

flag Sri Lanka’s tourism sector saw a 15.1% rise in visitors to 2.36 million in 2025 but lost $1.3 billion in potential revenue as per-capita spending dropped 12% to $1,363. flag Despite the Tourism Act of 2005, guide licensing and quality standards remain poorly enforced, with many unlicensed, underpaid guides working under commission pressure. flag A surge in young, university-educated, price-sensitive travelers booking independently via online platforms has boosted volume but strained infrastructure and lowered spending. flag Industry leaders warn the current trajectory risks overcapacity and misalignment with long-term goals, urging a strategic pause to improve data-driven planning, fair labor practices, and sustainable growth.

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