In the latest report from the Central Bank on external sector performance, Sri Lanka's tourism sector witnessed a remarkable surge in earnings, reaching USD 342 million in January 2024. This figure marks the highest monthly revenue since January 2020, signaling a significant recovery for the industry.
Published on Thursday (Feb. 29), the report unveiled a substantial improvement compared to previous years. December 2023 recorded USD 269 million, while January 2023 reported USD 154 million in tourism earnings. This robust performance reflects a positive trajectory for Sri Lanka's tourism sector.
Moreover, tourist arrivals soared in January 2024, reaching 208,253 visitors compared to 102,545 during the same period in 2023, indicating a resurgence in international interest in Sri Lanka as a destination.
In addition to tourism, Sri Lanka also experienced a positive trend in workers' remittances. January 2024 saw an increase to USD 488 million, compared to USD 437 million in January 2023 and USD 570 million in December 2023, showcasing steady growth in remittance inflows.
Despite a slight decline of 0.8% in merchandise exports to USD 971 million in January 2024 compared to USD 978 million in January 2023, the country observed a surge in expenditure on merchandise imports, rising by 6.2% to USD 1,512 million. This increase, attributed partly to the relaxation of import restrictions, reflects growing consumer and investment activity.
Moreover, Sri Lanka's gross official reserves (GOR) improved to USD 4.5 billion by the end of January 2024, with substantial net purchases of foreign exchange from the domestic market by the Central Bank. Notably, the GOR includes a swap facility from the People’s Bank of China (PBOC), amounting to around USD 1.4 billion, subject to conditionalities on usability.
Overall, the Central Bank's net purchases totaled USD 245 million in January 2024, contributing to the enhancement of Sri Lanka's economic resilience and stability.
