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How Sri Lanka is bouncing back

“Bookings for this Indian Ocean destination are on the rise as travellers crave culturally rich experiences ”

Special ReportOct 27, 2025by Katie Byng-HallSri Lanka

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Sometimes referred to as the Pearl of the Indian Ocean, Sri Lanka is famed for its abundant wildlife and lush terrain.

Where other island nations boast rows of palm trees and overwater villas, Sri Lanka majors on raw landscapes, making it a unique destination for adventure that an increasing number of travellers are taking notice of.

According to the Sri Lanka Tourism Development Authority, the country welcomed more than two million international tourists last year – 38% more than in 2023. The unofficial target is to attract three million visitors and generate $5 billion in tourism revenue this year. On October 1, the government will scrap the $50 visa fee for 33 countries, including the UK, making travel to the island even more enticing.

On the up

A continued upward trend in bookings to Sri Lanka seems inevitable.

Tourist arrivals have increased by 16.4% this year, including a 21.8% rise in June compared with the same month in 2024. The trend is reflected in British booking habits, with many agents and operators reporting a hike in demand.

Carrier has seen significant growth in the region, with bookings up 200% between 2023 and 2024.

Asia product manager Deepavali Gaind says the rise can be partly attributed to an “increase in stability” in the country after visitor numbers dropped following the political and civil unrest of 2022.

Red Savannah has seen demand for the destination surge by 45% in the past year, with clients also willing to pay more than previously. The operator’s average spend per person has gone up from $11,000 to $12,250 in the past year alone.

Pure Luxury’s Sri Lanka hotel bookings are 9% up year on year, while departures to the country from January to June were 14% higher than last year.

Victoria Roxburgh, Sri Lanka specialist for Audley Travel, which has seen a “huge increase” in interest for the island over the last two years, says the destination plays well into the trend of multigenerational travel, as it’s a “safe” location that is easy to travel around and has a good selection of family-friendly properties.

With a direct 10-hour flight from Heathrow and frequent domestic flights with Cinnamon Air, including private charters, Roxburgh says Sri Lanka is a “logistically straightforward” country to visit.

Agents are also noticing a shift. Bespoke Luxury Travel director Julie Harrison says honeymooners and families are two groups driving the growth in visitor numbers, adding: “I have seen an effort to market Sri Lanka to a younger audience, as more influencers are visiting and promoting the country.”

Kalkudah Beach House 4 credit Teardrop Hotels

Rich experiences

A sense of exploration is at the heart of Sri Lanka, thanks to its varied landscapes and cultural richness – something Red Savannah’s Sri Lanka expert Rachel Cooper says makes it a popular destination for luxury travellers seeking holidays with a “sense of discovery” that stretch “beyond the sunlounger”.

She adds that a recent change in the operator’s average length of stay in the destination – an increase from 11 to 14 days – suggests people going to the Indian Ocean are looking for holidays with “layers” that include culture, wildife and beaches.

Cooper explains there are four distinct Sri Lankan landscapes that keep visitors coming back: fascinating temples in the north; plantations and luxury bungalows along the tea trails; safaris in Yala National Park; and villas on the south coast with “miles and miles of beautiful white sand”.

Gaind says Sri Lanka’s remarkable wildlife is a key factor helping to attract travellers who may not have considered Sri Lanka before, with the chance to spot leopards, elephants, sloth bears, water buffaloes, crocodiles and more.

Joan Jones, creative travel director at Once in a Lifetime Holidays, agrees, adding the agency has seen a “huge increase in demand for wildlife and safari-based bookings”, with Sri Lanka sometimes “better priced than Africa” for a comparable luxury experience.

Ever-growing possibilities

Sri Lanka’s proximity to other Indian Ocean idylls also makes it a perfect location for twin-centre holidays, with Gaind citing the country’s “great accessibility with the Maldives”. Both Carrier and Audley note the combination of Sri Lanka and the Maldives as a popular choice to merge exploration and relaxation, with a 90-minute flight between the two.

“The two countries combine really nicely,” says Roxburgh. “You can have that adventure in Sri Lanka and move around quite quickly, seeing and doing a lot, because you know you’re going to the Maldives to unwind in pure luxury afterwards.”

Cooper notes that destinations such as Dubai and India are often combined with trips to Sri Lanka, with an increasing number of twin-centre pairings emerging while Sri Lanka is “massively in growth”.

The proposition for luxury travellers in the destination is only going to improve. The country’s high-end product has made notable gains in the past year (see box) – and this is expected to continue, with certain areas ripe for development. “The east coast season works completely differently,” says Cooper. “When the rest of the island has monsoons during the summer, the east coast is blissful – no rain, with powdery-white beaches and calm waters. There are very few luxury hotels there right now, so it’s an area with huge potential.”

Harrison adds: “Multiple companies and hotel groups have been refining and extending existing product in the country, so the future looks rosy for Sri Lanka.”

New product

With Sri Lanka’s popularity skyrocketing, the island has seen several luxury properties open this year.

In January, the destination welcomed two boutique hotels: barefoot eco-luxury resort Taru Villas Villu (read more, page 25) and Uga Halloowella, a renovated colonial bungalow in the heart of the island’s tea country. Many of Uga Halloowella’s original design features have been preserved, but the property now boasts six sumptuous suites with sweeping views of the country’s tea estates and the Pekoe hiking trail.

Perched on the scenic coastline of Tangalle in southern Sri Lanka, minimalist resort Uga Prava opened in May, offering seven suites and a tranquil infinity pool overlooking the ocean – the perfect coastal sanctuary for clients wishing to soak in the tropical surrounds.

In June, Kalkudah Beach House debuted on the relatively untouched east coast. Understated luxury is the theme across this beachfront resort, home to a three-bedroom Main House, two-bedroom Palm Villa and 22-metre pool.

The hotels join Kumana Under Canvas, a Wi-Fi and phone signal-free glamping property that opened in a blissfully remote area abutting the famous Yala National Park last year. The tented camp embodies Sri Lanka’s adventurous spirit, offering twice-daily game drives to view leopards, elephants and rare birds.