Sri Lanka"s tourism revival: locals eager for post-Covid recovery

Sri Lanka is experiencing a tourism revival following a severe economic crisis exacerbated by the Covid-19 pandemic. The country, known for its beautiful beaches and rich cultural heritage, faced significant challenges as inflation soared to 70%, power tariffs increased by 65%, and the currency depreciated by 45%. The crisis led to widespread protests, resulting in the resignation of then-president Gotabaya Rajapaksa. Prime Minister Ranil Wickremesinghe has since taken steps to stabilize the economy, including securing a $2.9 billion bailout from the IMF and restructuring $25 billion in foreign debt. As the economy begins to recover, tourism, which directly employs 205,000 people and contributes 2.5% to GDP, is expected to play a crucial role. The government aims to attract 2 million tourists in 2023, hoping to generate $3 billion in revenue, similar to pre-crisis levels. However, local businesses, like Tariq Nassim's ice-cream shop, are still struggling to regain their former customer base, with income remaining at half of what it was before the crisis. Industry leaders emphasize the need for improved facilities, better marketing, and streamlined visa processes to enhance the tourism sector. Safety and stability are paramount for attracting visitors, and the government has plans to establish a new agency to oversee tourism growth. Infrastructure upgrades are also targeted to double tourist arrivals to 5 million within five years. Overall, while there are signs of recovery, the path forward depends on effective governance and the implementation of policies that support the tourism industry and the broader economy.