Sri Lanka’s tourism sector faced a setback in December 2025 as earnings dropped sharply despite continued growth in visitor arrivals, highlighting persistent challenges in converting tourism volume into economic value.

According to data from the Sri Lanka Tourism Development Authority (SLTDA), the country earned US$308.6 million from tourism in December, a 14.8% decline from a year earlier. This contraction came even as arrivals increased 4.2% year-on-year to 258,928 visitors, marking the fourth consecutive month of falling revenue despite steady growth in arrivals.

The downturn in earnings is largely attributed to a drop in average tourist spending. Since August 2025, the SLTDA has revised the average daily spend per tourist from US$171 to US$148, a decline that significantly reduced total earnings. The drop reflects a broader trend of reduced per capita spending, preventing the tourism sector from capitalizing fully on the recovery in arrival numbers.

Although Sri Lanka has seen consistent increases in tourist volumes, the mismatch between arrivals and expenditure underscores the urgent need for value-driven strategies to strengthen tourism’s overall financial contribution.

Despite welcoming more tourists, the industry continues to grapple with revenue stagnation. While total arrivals rose 15.1% in 2025 compared with the previous year, those gains did not translate into proportional financial returns.

Once contributing nearly 5% of national GDP at its 2018 peak, tourism remains a vital driver of foreign exchange earnings. Yet the recent data points to an industry still recovering unevenly from crises, including the 2019 Easter Sunday attacks, the pandemic, and the ensuing economic turmoil.

Sri Lanka recorded a modest 1.6% increase in total tourism earnings for 2025, reaching US$6.22 billion, up from US$6.13 billion a year earlier. However, the country fell short of its 2026 targets of US$5 billion in revenue and 3 million arrivals, underscoring the need to prioritize quality and diversification over quantity.

The increase in arrivals during 2025 came despite severe flooding in the Kandy and Nuwara Eliya districts, which disrupted major travel routes. That resilience reflects Sri Lanka’s enduring appeal as a destination, even amid challenging economic and climatic conditions.

Tourism continues to support regional economies and employment, though economists warn that rising import costs linked to tourism spending are contributing to a widening trade deficit. Balancing tourism’s economic benefits with the country’s broader fiscal health remains an ongoing challenge.

For Sri Lanka to fully realize its tourism potential, experts emphasize the importance of enhancing visitor spending and diversifying tourism products. The focus is shifting toward sustainability, experience-driven travel, and high-value markets.

Growth opportunities lie in promoting heritage, cultural, wellness, and eco-tourism, which appeal to discerning travelers seeking authentic and responsible experiences. Strengthening infrastructure, improving service quality, and investing in destination marketing will be critical to raising average spend and enhancing competitiveness.

As Sri Lanka aims to reposition its tourism industry, increasing arrivals alone will not ensure economic success. The future lies in attracting higher-value travelers, emphasizing sustainability, and fostering experiences that benefit both visitors and local communities.

Reinforcing the sector’s resilience through innovation, investment, and long-term strategy will be essential for restoring tourism’s role as a cornerstone of Sri Lanka’s economic recovery.

Iranian and US forces were engaged in a tense race on Saturday to locate a missing crew member from a downed American fighter jet, marking the first such incident inside Iranian territory since the war began.

Tehran claimed responsibility for shooting down the US F-15 aircraft, stating it was destroyed by the Islamic Revolutionary Guard Corps (IRGC) Aerospace Force using advanced air defence systems. Iranian officials said the aircraft was completely destroyed and that search operations were ongoing. Local media also suggested that a reward would be offered for capturing any surviving crew member.

US media outlets reported that American special forces had successfully rescued one of the two crew members, while efforts continued to locate the second, who remains missing.

In a separate incident, Iran’s military said it had also shot down a US A-10 ground-attack aircraft over the Gulf. According to US reports, the pilot was safely recovered.

The US Central Command did not immediately confirm the loss of the F-15. However, White House Press Secretary Karoline Leavitt stated that President Donald Trump had been briefed on the situation. Trump later told NBC that the incident would not impact ongoing diplomatic efforts, saying the realities of war would not alter negotiations.

The conflict, now over a month old, began with US-Israeli strikes on Iran that reportedly killed Supreme Leader Ali Khamenei. The escalation has since spread across the Middle East, disrupting global markets and affecting millions worldwide.

Iranian parliamentary speaker Mohammad Ghalibaf criticised the Trump administration on social media, mocking what he described as a lack of strategic direction.

Meanwhile, fresh strikes were reported across Iran, Israel, and Lebanon. Explosions were heard in northern Tehran, while US strikes west of the capital reportedly hit civilian areas. According to Iran’s Alborz provincial authorities, 13 civilians were killed and dozens injured in one such attack.

The ongoing exchanges have increasingly targeted economic and industrial infrastructure, raising concerns over global energy security. Iran has effectively restricted access to the Strait of Hormuz, a vital route for roughly 20 percent of the world’s oil and gas supplies.

Former Iranian foreign minister Mohammad Javad Zarif, writing in Foreign Affairs, suggested Tehran could pursue a diplomatic resolution by limiting its nuclear programme in exchange for sanctions relief and reopening the strategic waterway.

Tensions have also spread to Gulf states. A drone strike on a Kuwaiti oil refinery caused fires, while another attack damaged a power and desalination facility. In Dubai, authorities reported minor damage from debris following an aerial interception, though no casualties were recorded.

In Lebanon, Israeli forces said they had carried out more than 3,500 strikes targeting Hezbollah positions since hostilities began. The Israeli military confirmed attacks on infrastructure in Beirut and the Bekaa Valley, including the destruction of key bridges.

Lebanon’s health ministry reported that at least 1,345 people have been killed and more than 4,000 injured since the conflict escalated. Hezbollah has not disclosed its casualty figures.

Source: Khaleej Times

Air defence systems in the United Arab Emirates intercepted five ballistic missiles and 35 drones launched from Iran on April 1, 2026, as the ongoing Middle East conflict reached its 33rd day.

According to official figures, the conflict—ongoing since February 28—has resulted in 12 fatalities and 190 injuries within the UAE. Authorities confirmed that on April 1, a Bangladeshi expatriate lost his life after debris from a successfully intercepted drone fell onto a farm in Fujairah.

Among those killed are two members of the UAE armed forces who died while carrying out their duties, along with a Moroccan civilian working under a military contract. In addition, nine civilians of various nationalities were killed in separate incidents across the country, including individuals from Pakistan, Nepal, Bangladesh, Palestine and India.

Officials reported that the 190 injured individuals suffered a range of wounds, from minor to critical. The casualties include residents and nationals from a wide range of countries, reflecting the UAE’s diverse population.

In a statement, the Ministry of Defence said it remains on high alert and fully equipped to respond to any emerging threats. The ministry emphasized its commitment to protecting national security, preserving stability, and safeguarding the country’s sovereignty and strategic interests.

Source: Khaleej Times

Kuwait Airways announced the resumption of flights to four Indian cities via Dammam International Airport in Saudi Arabia, starting April 5. The destinations include Ahmedabad, Kochi, Delhi, and Mumbai.

Acting Chief Executive Officer Abdulwahab Al-Shatti confirmed that Ahmedabad flights will operate once weekly on Sundays from April 5. Kochi services will run twice weekly on Mondays and Wednesdays beginning April 6, while Delhi flights will start weekly from April 7, and Mumbai flights will operate weekly on Fridays starting April 10.

Al-Shatti noted that these routes are part of a broader expansion from Dammam, which already includes London, Cairo, Istanbul, Lahore, and Amman, bringing Kuwait Airways’ total operational destinations to nine. The airline is continuing to grow its network while ensuring efficient operations and minimizing delays to meet rising passenger demand.

To facilitate smoother travel, Kuwait Airways has introduced a visa application service for Saudi Arabia for residents with confirmed bookings through the airline. Al-Shatti emphasized the company’s cooperation with authorities both inside and outside Kuwait to maintain operational efficiency, with passenger and crew safety as a top priority.

Additionally, the airline announced special promotions in partnership with Al-Khiran Mall, allowing passengers to shop at competitive prices before departure. Bookings are available via hotline 171, WhatsApp 009651802050, or at sales offices.

Source: ZAWYA

Qatar Airways has released a revised flight schedule indicating a gradual expansion of its global operations, with services expected to cover more than 120 destinations by mid-May 2026. The updated timetable reflects a phased increase in flights to and from Doha as the airline continues to rebuild capacity across its international network.

All services are currently operating via designated flight corridors coordinated closely with the Qatar Civil Aviation Authority, ensuring continuity under established safety and regulatory frameworks.

The airline cautioned that schedules remain subject to change or cancellation due to operational, regulatory, or safety-related factors beyond its control. Passengers are advised to consult the official Qatar Airways website or mobile application for the latest updates and to ensure their contact information is accurate.

Customers holding confirmed bookings for destinations included in the revised schedule will be notified directly with updated travel details. The airline has also urged travelers not to proceed to the airport unless they possess a valid, confirmed ticket.

Qatar Airways stated that its operational teams are working within existing constraints to minimize disruption and support passengers in reaching their destinations. The carrier issued an apology for any inconvenience caused and expressed appreciation for customer patience during the ongoing adjustments.

Reaffirming its commitment to safety, the airline emphasized that the wellbeing of passengers and crew remains its top priority.

As part of its continued flexibility measures, passengers with confirmed bookings for travel between 28 February and 15 June 2026 are eligible to change their travel dates without additional fees, subject to availability and seasonal fare conditions. Rebooked travel must be completed by 31 October 2026. Alternatively, customers may opt for a refund of the unused portion of their ticket, with processing times of up to 28 working days.

Gulf Air has announced the continuation of its temporary network via Dammam, extending operations to various international destinations through April 2026. Travel arrangements between Bahrain and Dammam will be provided for confirmed passengers.

Gulf Air has confirmed that its temporary Dammam network will continue operating through April 2026. Key extensions include:

• Paris (CDG): Operations extended until 5 April 2026
• London Heathrow (LHR): Operations extended until 11 April 2026
• Mumbai (BOM), Nairobi (NBO), Cairo (CAI), Chennai (MAA), Bangkok (BKK), Manila (MNL), Casablanca (CMN), Frankfurt (FRA): Operations extended until 30 April 2026

Passengers with confirmed bookings will be provided transportation between Bahrain and Dammam. Gulf Air will also facilitate Saudi transit visas for travelers connecting to Saudi Arabia via the airline’s arranged land transportation. Passengers whose final destination is Saudi Arabia are required to hold a valid visa independently.

Gulf Air advises passengers not to proceed to their departure station without a confirmed ticket. Flights to and from Bahrain International Airport remain temporarily suspended.