Sustaining the hospitality and tourism industry in Sri Lanka: a descriptive analysis of past and present trends for the future

Sri Lanka has been an attractive tourist destination for centuries, but a modern Hospitality and Tourism (H&T) industry was only established in the 1960s. Since then, the industry has played a vital role in the country’s economy. However, the recent pandemic, along with recent politico-economic crisis, has had a significant negative impact on the country’s H&T industry. This study aims to understand key aspects of the industry’s past and present to provide some tentative insights into the future. The study reveals that inbound tourism has grown rapidly over the last decade but dropped significantly in 2019, with some signs of recovery in 2021. The top ten tourist source markets have undergone significant reordering. Indirect employment in the H&T sector has seen a significant decrease, while direct employment remains unchanged. Despite government’s focus on attracting international tourists, it is domestic tourism that serves as the necessary bedrock of the industry.