Sri Lanka: Sustainable Tourism Sector Development Program (Subprogram 1)
The Sustainable Tourism Sector Development Program aims to support the Government of Sri Lanka in creating a resilient, inclusive, and sustainable tourism sector by boosting tourist arrivals and foreign exchange earnings from tourism, achieving at least $5 billion in foreign exchange earnings from tourism by 2025, and by leveraging private sector participation (PSP) through strategic reforms and targeted catalytic investments. The program combines a policy-based loan (PBL), to be delivered through a programmatic approach, with two subprograms and a project investment component. The proposed reforms under the PBL component address the binding constraints faced by the tourism sector and businesses; and are aligned with Sri Lanka's National Tourism Policy (NTP), a 10-year policy document with the vision of transforming the tourism sector as the major engine of inclusive economic growth and sustainable development.
| PROJECT DETAILS | ||
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Commitment Date Funding Type Country Sector Status Total Cost |
17 Nov 2025 Loan Sri Lanka Tourism Ongoing $105 million | |
| KEY OUTPUTS |
Reform area 1: Improve sector governance, coordination, and the performance of tourism entities. Reform area 2: Inclusive development to increase the participation of women in tourism jobs. Reform area 3: Value creation in tourism through formalization of business, private sector participation, and domestic resource mobilization
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| FINANCING |
$70 million (Asian Development Bank Concessional ordinary capital resources lending) $30 million (Asian Development Bank Ordinary Capital Resources) $5 million (Government of Sri Lanka) |
