The Asian Development Bank (ADB) has approved a USD 100 million loan to strengthen Sri Lanka’s tourism sector, with a targeted focus on developing the Dambulla–Sigiriya and Trincomalee regions as globally competitive destinations, the multilateral lender announced.
The new financial package will support the government’s National Tourism Policy, enabling policy reforms, institutional strengthening, infrastructure upgrades, and enhanced digitalization across the industry. The initiative aims to transform tourism into a powerful driver of inclusive economic growth.
“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,” ADB Country Director for Sri Lanka Takafumi Kadono said.
The Sustainable Tourism Sector Development Program includes a concessional loan of USD 70 million and a regular loan of USD 30 million. Key areas of assistance include improving sector governance, strengthening asset management, expanding high-end tourism product offerings, and boosting international marketing efforts.
With tourism arrivals in 2025 rebounding to near-2018 levels but earnings still trailing pre-pandemic figures, the ADB emphasized the need for diversification. The program will support new tourism segments such as marine and adventure tourism, while promoting lesser-explored destinations to increase visitor stay duration and spending.
The project is also expected to enhance private sector participation and create greater opportunities for women in the workforce, ADB noted.
Development plans in Dambulla and Trincomalee aim to close existing infrastructure gaps, improve visitor experiences around iconic attractions such as Sigiriya, and position the eastern coastline as a sustainable tourism hub generating higher foreign exchange revenue.
As Sri Lanka continues its post-crisis economic recovery, the tourism initiative marks another push to revive one of the nation’s most vital income-earning sectors.
