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Airport upgrades, destinations, and workforce buildup for tourism sector
View(s):By Tharushi Weerasinghe
Several substantial allocations have been outlined in Budget 2026 to strengthen Sri Lanka’s tourism sector, with funding drawn mainly from the Sri Lanka Tourism Development Authority and underused Tourism Development Funds.
Rs 3.5 billion was allocated for a tourism destination development project focused on nature and historical heritage, including programmes for the Hamilton Canal and Negombo Lagoon. A further Rs. 2.5b was proposed to develop Beira Lake into an attractive public space with expanded social, environmental and tourism use.
A recent batch of tourist arrivals at the BIA
Airport development forms a substantial part of next year’s commitments. The government expects to complete work at the Hingurakgoda Airport in 2026 and has allocated Rs. 1b for the Sigiriya and Trincomalee domestic airports. Operations at the Jaffna International Airport are also slated for expansion, with additional support from the Civil Aviation Authority. The stalled Bandaranaike International Airport expansion is scheduled to resume in the first quarter of next year, while work continues on the debt restructuring of SriLankan Airlines.
To address labour shortages in the sector, the Sri Lanka Institute of Tourism and Hotel Management has introduced a short-term hospitality multi-purpose programme through TVEC-recognised institutions. For this, Rs. 500m was allocated from the Tourism Development Fund.
These measures accompany long-term targets of US$8b earnings and 4m tourists by 2030.
The 2026 proposals build on the 2025 Budget, which prioritised value generation over arrival numbers. In 2025, Rs. 500m was allocated to develop culturally branded destinations and a two-year infrastructure rollout supported by an integrated city branding campaign. Training youth for tourism, expanding new destinations, introducing a digital ticketing system, improving tourist safety through technology, and advancing BIA Terminal 2 with Japanese support were also highlighted. While the 2026 Budget continues destination development, it places greater emphasis on airport upgrades, and workforce expansion.
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