The Republic of Sri Lanka has been actively engaged at the 26th Session of the General Assembly of the World Tourism Organization (UNWTO) held in Riyadh, Saudi Arabia, from November 8-11, 2025, pursuing a comprehensive strategy to bolster its tourism sector and attract foreign investment. This engagement represents a deliberate effort to mitigate economic challenges and capitalize on emerging opportunities within a globalized landscape. The core of this strategy revolves around diversifying the Sri Lankan economy beyond its traditional reliance on apparel and remittances, and leveraging tourism as a key driver for sustainable growth.
The immediate context for Sri Lanka’s participation is a nation grappling with significant economic headwinds following a period of intense debt and instability. The government’s focus at the UNWTO assembly is to demonstrate a commitment to reform and to position Sri Lanka as a viable and attractive destination for tourism investment. This includes actively promoting the country’s cultural heritage, natural beauty, and burgeoning wellness tourism offerings, alongside investments in digital infrastructure and technology – key components of the “Digital Sri Lanka” initiative. The Saudi Arabian host country’s ambitious Vision 2030, centered on diversifying its economy, has created a particularly fertile environment for this diplomatic effort.
Stakeholder Analysis: A significant portion of Sri Lanka’s diplomatic activity centered on bilateral meetings. These included discussions with key figures from Saudi Arabia, including Minister of Foreign Affairs H.H. Prince Faisal bin Farhan, CEO of the Saudi Fund for Development (SFD) Mr. Sultan Abdulrahman Al-Marshad, and the leadership of the Saudi Chambers of Commerce. India, a traditional tourism partner, was also addressed through meetings with Minister of Culture and Tourism Gajendra Singh Shekhawat, and Minister of Tourism Patricia de Lille. Crucially, the government sought engagement with South Africa’s Minister of Tourism, Sherif Fathi Attia, highlighting the potential for cooperation in wildlife and eco-tourism, a sector increasingly driven by sustainability concerns. The initiative was underpinned by the Sri Lanka Federation of Chambers of Commerce and Industry (SLFCC) and the Saudi Chambers of Commerce (FSC) who formally established the Sri Lanka-Saudi Arabia Joint Business Council, a landmark agreement designed to foster direct private sector interaction.
Data and Trends: According to UNWTO data released in October 2025, global tourism recovery continues, albeit unevenly. Asia-Pacific remains a region of significant growth, driven by China’s rebound and increased travel from Southeast Asia. Sri Lanka’s participation at the assembly reflects a strategic alignment with these broader trends. Furthermore, the government emphasized investment opportunities in key sectors, including AI technology, aquaculture, and wellness tourism – sectors identified as having the potential to significantly contribute to economic diversification. “The focus on wellness tourism is particularly astute,” notes Dr. Anya Sharma, Senior Research Fellow at the Centre for Global Development, “Given the growing global interest in holistic wellbeing, Sri Lanka’s unique offerings – combining ancient traditions with modern facilities – presents a compelling market.”
Recent Developments & Strategic Shifts: Over the past six months, Sri Lanka has moved to streamline its investment regulations, offering attractive incentives to foreign investors. The launch of the Joint Business Council is a tangible manifestation of this effort. The government’s proactive engagement with the SFD, even during a challenging period, demonstrates a commitment to securing long-term development assistance. The focus on digital transformation, exemplified by the “Digital Sri Lanka” initiative and the promotion of AI technology, is intended to boost productivity and competitiveness across key sectors. As highlighted by the recent signing of the MoU between the FSC and SLFCC, the establishment of this Business Council represents a significant step towards facilitating private sector engagement and fostering greater economic cooperation between the two nations.
Short-Term & Long-Term Outlook: Over the next six months, Sri Lanka’s success will hinge on the effective implementation of the policies and initiatives unveiled at the UNWTO assembly. Attracting tangible investment in priority sectors will be critical. Longer-term, a sustainable tourism model – one that balances economic growth with environmental and cultural preservation – will be essential. Within the next five to ten years, Sri Lanka has the potential to become a significant regional tourism hub, driven by its unique offerings and, importantly, sustained investment in infrastructure and technology. However, success is contingent on the ability to manage external economic pressures and maintain a stable political and regulatory environment. The formation of the Business Council represents a powerful tool for navigating these challenges.
Call to Reflection: Sri Lanka’s engagement at the 26th UNWTO Assembly underscores the importance of strategic diplomatic engagement in addressing complex economic challenges. The government’s commitment to diversifying the economy and attracting foreign investment is a bold move, one that will require careful execution and sustained political will. The success of this initiative will not only impact Sri Lanka’s economic future but also serve as a case study for other nations seeking to leverage tourism as a pathway to sustainable development. The ongoing conversations sparked by the Riyadh assembly – concerning the impact of AI on the tourism sector and the need for greater sustainability – are issues that demand widespread discussion and collaborative solutions.