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Sri Lanka’s retail sector is poised for stability in 2024 amid economic reforms. The country faced hyperinflation and import restrictions in 2022, causing essential goods shortages. By 2023, many restrictions were lifted, improving consumer spending and supply chains.

Economists predict 3.5% economic growth for Sri Lanka in 2024. This growth stems from easing inflation and rising household incomes. The retail sector is crucial for the country’s recovery.

Retail contributes over 30% to the national GDP. It also provides jobs for about 14% of the workforce. Digital transformation efforts will likely boost the sector’s growth and competitiveness.

Key Takeaways

• Sri Lanka’s retail sector is projected to stabilize in 2024 as economic reforms take hold and inflation eases.
• The retail sector accounts for over 30% of the national GDP and employs 14% of the workforce.
• Economists forecast a 3.5% economic growth for Sri Lanka in 2024.
• Inflation is expected to stabilize, averaging 6.6% in 2024 and decreasing to 5.0% in 2025.
• Digital transformation initiatives are likely to support the retail sector’s growth and competitiveness.

Economic Recovery and Consumer Spending

Sri Lanka’s economy shows signs of promising growth. The World Bank projects a 4.4% growth for Sri Lanka in 2024. This recovery is driven by increased consumer spending, tourism revival, and investment growth.

Inflation Stabilizes and Eases Economic Pressures

Inflation is expected to average 6.6% in 2024 and 5.0% in 2025. This stabilization will ease economic pressures on households and boost consumer confidence. The Monetary Policy Board has set a quarterly headline inflation target of 5%.

Despite recent tax adjustments, inflation should remain below target. This is due to downward adjustments in tariffs and fuel prices.

Year	Projected Inflation
2024	6.6%
2025	5.0%

Household Incomes Rebuild Purchasing Power

As inflation stabilizes, household incomes are expected to regain purchasing power. This will encourage consumption and drive economic recovery. Consumer discretionary spending may moderate in the short term due to reduced disposable income.

The supermarket sector is likely to remain stable. Essential items make up a large part of consumers’ shopping baskets. Cargills PLC reported a 12% year-on-year revenue increase, totaling Rs. 54,403 million.

Tourism Sector Revival and Investment Spending

The tourism sector is set for a comeback as global travel resumes. This will boost employment and generate foreign exchange, supporting economic recovery. Investment spending is expected to increase as businesses focus on sustainable practices.

Private credit is projected to rise later in the year. This depends on businesses investing in expansion. Currently, companies are focusing on de-leveraging to strengthen financial stability.

Sri Lanka’s Retail Sector Expected to Stabilize in 2024

Sri Lanka’s economy is on the mend. The retail sector is set to stabilize in 2024. It’s a key player in the country’s GDP and job market.

The sector makes up over 30% of national GDP. It provides 14% of direct employment. More than 10% of households rely on retail sector jobs.

Retail Sector’s Contribution to GDP and Employment

In 2021, about 270,000 retail stores operated across Sri Lanka. Informal retailing remained strong, especially for fresh produce and clothing.

Year	Retail Offline Sales (LKR Mn)	Retail E-Commerce Sales (LKR Mn)
2017	1,945,678.8	7,782.7
2018	2,140,246.7	10,701.2
2019	2,289,063.9	13,734.4
2020	2,175,110.8	19,575.9
2021	2,392,621.8	26,355.5
2022	3,110,408.4	43,545.6

Informal Retail Marketing Remains Strong

Informal retail marketing thrives in Sri Lanka. It’s particularly strong for fresh produce, cooked food, and clothing. Traditional grocery retailers and direct selling still play a big role.

Retailers’ Association Raises Concerns

The Sri Lanka Retailers’ Association (SLRA) voiced worries about the sector in 2022. They feared a collapse would hurt the economy. However, the expected 2024 stabilization may ease these concerns.

Conclusion

Sri Lanka’s economy is showing promising recovery signs in 2024. The retail sector is expected to stabilize and boost economic growth. The first quarter saw a 5.3% growth, compared to a 10.7% contraction in 2023.

Key sectors like agriculture, industry, and services are driving this recovery. This indicates a gradual return to normalcy. Easing inflationary pressures have helped stabilize consumer spending.

The Colombo Consumer Price Index dropped from 6.4% to 0.9% between January and May 2024. This has rebuilt household purchasing power. The retail sector is set to benefit from increased consumer confidence and demand.

Tourism revival and increased investment spending will further boost the retail industry. However, challenges like poverty, income inequality, and labor market issues persist. Strong reforms are needed to address these problems.

The retail sector is crucial for Sri Lanka’s GDP and employment. Its stability is vital for the country’s economic health. To succeed long-term, the sector must embrace digital transformation and ensure supply chain resilience.

Adopting sustainable practices will also position Sri Lanka’s retail sector for success post-pandemic. These steps will contribute to the overall well-being of Sri Lankan citizens.

Sri Lanka is making big moves in sustainable tourism. The government has set new rules to boost eco-tourism. Their efforts paid off with a UN award for mangrove restoration.

Tourism is vital to Sri Lanka’s economy, making up 10% of GDP. But rapid growth has caused problems. Hotels use more water and make more waste than regular homes.

To fix this, Sri Lanka created the R-NSTC framework. It covers nine areas, including sustainability and community engagement. The framework aims to make tourism more eco-friendly.

The R-NSTC launch event drew over 100 guests. It also unveiled the Uva Provincial Tourism website. This site showcases top tourist spots in the Uva province.

Eco-tourism is already working well in Sri Lanka. Wildlife parks drew 39.2% of tourists in 2023. Hurulu Eco Park was the most popular spot.

Most hotels in Sri Lanka are working towards eco-friendly practices. The THASL President highlighted this trend.

Gal Oya Lodge is a great example of sustainable tourism. It hires 80% of staff from nearby villages. The lodge also works with wildlife groups on research projects.

Another success story is the Barnhouse Studio. It’s Sri Lanka’s first upcycled hotel. The hotel won an award for its eco-friendly practices in 2023.

Sri Lanka’s eco-tourism matches global trends. The country has room to grow in this area. By focusing on sustainability, Sri Lanka can attract more eco-minded travelers.

The government and private sector are working together. Their efforts should boost tourism and help the economy. At the same time, they’re protecting Sri Lanka’s natural beauty.

Key Takeaways

• Sri Lanka is actively promoting sustainable tourism through eco-friendly initiatives and legal amendments.
• The R-NSTC framework and Uva Provincial Tourism Promotional website aim to uplift the eco-tourism industry.
• Wildlife parks and eco-lodges are attracting a significant portion of tourist arrivals.
• Hotels and resorts in Sri Lanka are embracing sustainability and local community engagement.
• Sri Lanka’s ecotourism practices align with global trends and have the potential for further growth.

Sri Lanka’s Commitment to Sustainable Tourism

Sri Lanka is making big moves to boost eco-tourism. The government has set new rules to help the industry grow. These steps aim to protect the country’s natural beauty.

A key project is restoring mangrove ecosystems. In two years, 326 hectares of mangroves were planted. This effort helps save wildlife and fight climate change.

Sri Lanka’s work on mangroves has won praise. The UN gave them a Flagship Award for their efforts.

Government Regulations and Legal Amendments

The Sri Lanka Tourism Development Authority (SLTDA) is working with the UN. They’ve created a plan to make tourism more eco-friendly. This plan focuses on hotels first.

The SLTDA is helping with money and know-how. They’re running a test project for eco-friendly tourism certificates.

Tourism Minister John Amaratunga says sustainable growth is key. The goal is to make Sri Lanka a top eco-friendly spot in 3-5 years.

International Recognition for Mangrove Restoration Efforts

Sri Lanka’s work to restore ecosystems has caught global attention. Their mangrove planting efforts stand out. Here’s a look at what they’ve achieved:

Year	Mangrove Area Planted (Hectares)	International Recognition
2019	150	–
2020	176	United Nations Flagship Award
Total	326	–

These efforts help preserve Sri Lanka’s unique nature. They also make the country more appealing to eco-conscious tourists. Sri Lanka is setting a great example for other countries to follow.

Eco-Tourism Attractions and Infrastructure Development

Sri Lanka is boosting sustainable tourism through eco-friendly attractions and improved infrastructure. The country has unveiled new national parks and wildlife sanctuaries. These include the 2,500-hectare Gal Oya National Park and Manigala Forest Lodge.

The government has upgraded sanitary facilities at popular eco-tourism spots. These improvements cater to foreign tourists at Sinharaja, Kanneliya, Hurulu, Knuckles, and Udawattakele. They ensure a comfortable and hygienic environment for visitors.

Online Ticket Reservation System for Popular Destinations

Sri Lanka has launched “Day Visitor E-Permits” for several national parks. This online system covers Yala, Udawalawe, Horton Plains, Kaudulla, Minneriya, and Wilpattu. Visitors can now plan trips easily and avoid long queues.

These eco-tourism efforts have boosted Sri Lanka’s tourism industry. In early 2023, the country welcomed over 524,000 tourists. May 2023 saw an 8% increase in foreign arrivals compared to last year.

Year	Foreign Tourist Arrivals	Eco-Tourism Engagement
2018	2.3 million	52% (1.1 million)
2000	400,414	1% (4,004)

Sri Lanka faces challenges from climate change and unsustainable practices. Yet, it remains dedicated to sustainable tourism and biodiversity conservation. With its unique species and protected areas, Sri Lanka could become a top eco-tourism destination.

Sri Lanka’s Eco-Friendly Initiatives Attract Surge in Tourism

Sri Lanka’s eco-friendly tourism practices have boosted visitor numbers. The country’s tourism sector has seen a rise in eco-conscious travelers. In early 2024, forest attractions drew 364,521 tourists, up from previous years.

Significant Increase in Local and Foreign Tourist Arrivals

Sri Lanka’s focus on ecotourism has improved its appeal. The country upgraded roads, airports, and tech to enhance visitor experiences. These changes attracted both foreign and local tourists.

Sri Lanka aims for 2.3 million foreign tourists this year. Their goal for 2025 is 3 million visitors.

Rising Percentage of Foreign Tourists Among Visitors

The share of foreign tourists has grown steadily. In 2022, they made up 19.8% of visitors. This rose to 27.8% in 2023 and 40% in 2024.

Free 30-day visas for 35 countries started October 1. This move has attracted more international tourists. Tourism earnings reached $1.88 billion in seven months, a 73.3% increase from last year.

The Galle Literary Festival is making a comeback in 2025 after a five-year break. This celebrated event brings together renowned authors, poets, and thinkers from across the globe. The historic coastal city of Galle will once again host this vibrant celebration of literature and arts.

The 12th edition will run from February 6-9, 2025. Literary enthusiasts from near and far have been eagerly waiting for its return since 2024.

The 2024 festival drew over 5,000 visitors, with more international attendees than before. It featured 99 participants, including 25 local authors and 27 international guests.

The event offered a rich experience with more than 180 activities. These included talks, panel discussions, workshops, film screenings, and children’s programs.

Key Takeaways:

• The Galle Literary Festival, a prominent cultural event in Sri Lanka, returns in 2025 after a five-year hiatus.
• The 12th edition of the festival will take place from February 6-9, 2025, in the historic coastal city of Galle.
• The 2024 festival welcomed over 5,000 visitors, with a significant increase in international attendees.
• The festival featured 99 participants, including local and international authors, poets, and intellectuals.
• More than 180 events were scheduled during the festival, offering a diverse and engaging experience for attendees.

Galle Literary Festival Announces Dates for 2025

The Galle Literary Festival is set to return in 2025. This major South Asian literature event will be held from February 6-9, 2025. The historic city of Galle, Sri Lanka, will host the 12th edition of this prestigious book festival.

12th Edition Set for February 6-9, 2025

The Galle Literary Festival prepares for its 12th edition. Harper’s Bazaar Magazine UK named it the “No.1 Literary Festival in the world” in 2011. The festival dates align with Sri Lanka’s Independence Day on February 4th.

This timing allows attendees to enjoy both the literary event and cultural celebrations. Visitors can explore Sri Lanka’s rich heritage alongside the book festival.

Festival Expects Significant Increase in Attendees

The 2025 edition aims to attract more literature fans from around the world. Organizers expect a surge in visitors after the festival’s successful 2024 return. They’re focusing on drawing attendees from India, the Middle East, and Europe.

The festival showcases the best of South Asian literature. It also provides a platform for writers’ retreats, adding to its appeal.

Year	International Writers	Sri Lankan Writers	Total Events
2024	40	50	70+
2025 (Projected)	60	75	100+

Curating a Vibrant and Thought-Provoking Program

The Galle Literary Festival 2025 promises an exciting lineup of events. Organizers are planning panel discussions, workshops, and creative experiences. These events will explore current global issues through literature.

The festival focuses on South Asian literature and meaningful conversations. It aims to bring together writers, readers, and thinkers. Attendees can engage in intellectual discussions and cultural exchanges.

Sri Lanka’s Galle Literary Festival Returns After Five-Year Hiatus

The Galle Lit Fest made a triumphant comeback in 2024 after five years. This 11th edition attracted over 5,000 book enthusiasts from January 25th to 28th. Attendees dove into the vibrant world of literature once again.

The 2024 festival featured 99 key figures, including 25 local and 12 diaspora authors. It also hosted 27 international participants, 9 chefs, and 24 moderators. With 180 events, the festival covered topics from Sri Lankan literature to global history.

The lineup included discussions on engaging the next generation with nature. The diverse programming offered something for everyone, making it a must-attend event.

Positive Feedback from 2024 Edition

Attendees and authors praised the Galle Lit Fest for its diverse programming. The festival issued 5,392 tickets, with nearly half of all events sold out. This showed strong enthusiasm and support for the beloved literary event.

Attendee Feedback	Author Feedback
“An incredible celebration of literature and culture”	“Probably the best literary festival in the world” – Sebastian Faulks
“A truly enriching experience”	“The best festival I’ve ever been to, not just for literature but the arts as a whole” – Vidura BR
“Can’t wait for the next edition!”	“One of the most stimulating, fun and beautiful festivals I have ever attended” – Moni Mohsin

Headlining Authors Praise the Festival

Headlining authors gave glowing reviews of the Galle Literary Festival. Mary Beard, Sebastian Faulks, Christina Lamb, and Anthony Horowitz attended the event. Alexander McCall Smith also joined, sharing insights with eager audiences.

The Festival Director highlighted the event’s role in promoting Galle and Sri Lanka. It has become a hub for creative travelers and literary enthusiasts. The festival also aims to foster a reading culture in the region.

The Galle Lit Fest continues to grow and evolve. It showcases the enduring power of Sri Lankan literature and its global appeal.

Conclusion

The Galle Literary Festival’s 2025 edition promises to be exciting. Founder Geoffrey Dobbs reaffirms its commitment to learning and cultural exchange through literature and arts. The festival seeks partnerships to make Galle a hub for education and development.

This event goes beyond literature. It creates a platform for discussions on current issues and human rights in Sri Lanka. The festival invites international writers to highlight challenges faced by cultural workers and activists.

The festival aims to foster dialogue among moderates from all communities. It focuses on social and political matters to promote understanding. With increased international participation, the event solidifies its position in South Asia.

The Galle Literary Festival continues to grow and evolve. It remains true to its core values of education and cultural exchange. Through literature, it promotes progress in Sri Lanka and beyond.

The Pekoe Trail offers an unforgettable journey through Sri Lanka’s Central Highlands. This 300-kilometer walking trail, established in March 2024, spans from Kandy to Nuwara Eliya. It features 22 stages, allowing hikers to explore diverse ecosystems and connect with local communities.

The trail showcases some of South Asia’s finest mountain terrain and ecology. It begins in historic Kandy and winds through picturesque towns like Haputale, Hatton, and Ella. Hikers can explore tropical forests, rolling grasslands, and lush tea plantations along the way.

The Pekoe Trail Organisation, a local nonprofit, manages this hiking trail. National Geographic featured it among its “Best of the World” list for 2024. Some sections are already open, with others launching by December.

Key Takeaways:

• The Pekoe Trail is a 300-km, 22-stage hiking trail through Sri Lanka’s Central Highlands
• The trail offers diverse ecosystems, mountain terrain, and cultural experiences
• Hikers can explore historic towns, tea plantations, and engage with local communities
• The Pekoe Trail Organisation, a local nonprofit, manages the trail
• The trail has gained international recognition, featured in National Geographic’s “Best of the World” list for 2024

Discover the Heart of the Hill Country on the Pekoe Trail

The Pekoe Trail offers a 300-kilometer journey through Sri Lanka’s hill country. This trail has 22 stages and showcases the Central Highlands’ beauty. It caters to hikers of all skill levels.

Immerse Yourself in Sri Lanka’s Central Highlands

The Financial Times named the Pekoe Trail one of the world’s five most incredible walks. It starts in Kandy and winds through 21 Sri Lankan tea estates. Visitors can tour a tea factory to see Ceylon tea production firsthand.

The trail covers stunning landscapes in the Central Highlands. Hikers will see diverse ecosystems, from tropical forests to serene grasslands. They’ll enjoy cool air and magnificent mountain views throughout their journey.

Experience Diverse Ecosystems and Mountain Terrain

Horton Plains National Park is a trail highlight at 2,100–2,300 meters altitude. It’s a biodiversity hotspot and the source of three major Sri Lankan rivers. The park hosts many endemic plant and animal species.

The Pekoe Trail has varying levels of difficulty. Hikers should carry water, snacks, a first aid kit, and a multi-tool. Wear layers and sturdy footwear with good grip for the diverse terrain.

Trail Length	Number of Stages	Tea Estates Visited	Best Hiking Season
300 kilometers	22	21	December to March

Support eco-tourism by hiking the Pekoe Trail responsibly. Engage with local communities and learn about their culture. Your journey helps conserve Sri Lanka’s natural heritage while providing an unforgettable adventure.

Sri Lanka’s Pekoe Trail Offers New Hiking Adventures Through Tea Country

The Pekoe Trail is a 300-kilometer hiking route in Sri Lanka’s tea country. It’s divided into 22 stages, each 10 to 18 kilometers long. The trail winds through diverse landscapes, from forests to mountains like Adam’s Peak.

Hikers can stay in restored luxury tea bungalows along the way. These accommodations support local communities and offer comfort. The trail connects various tea estates, showcasing Sri Lanka’s tea production history.

Traverse Forests, Plains, Rural Villages, and Ceylon Tea Plantations

The Pekoe Trail blends adventure, nature, heritage, and exploration. Hikers can explore ecologically sensitive areas and see diverse wildlife. Stages 11 and 12 pass through Horton Plains National Park, offering varied landscapes.

Stage	Distance	Elevation Gain	Highlights
1	8-16 km	383 m	Loolecondera Estate (first tea plants in Sri Lanka)
2	8-16 km	–	Views of tea estates in the highlands
11-12	10-18 km	–	Horton Plains National Park (diverse landscapes and wildlife)

Encounter Sri Lanka’s Rich Heritage, Intriguing History, and Unique Culture

The Pekoe Trail reveals Sri Lanka’s rich heritage and unique culture. Hikers can visit the Ceylon Tea Museum to learn about tea history. The trail connects less-visited areas with popular destinations like Kandy.

Currently, 40% of the trail is operational. More stages will open by March 2024. The Pekoe Trail can boost local economies along its route.

The European Union offers grants for businesses along the trail. They also support skill development programs for local entrepreneurs. This ensures sustainable growth in the area.

Explore Iconic Tea Country Towns Along the Trail

The Pekoe Trail is a 300km-long hiking trail in Sri Lanka’s central highlands. It winds through spectacular towns, each with unique landscapes and attractions. Hikers can enjoy diverse experiences along this newly-developed trail.

Kandy: A Blend of Ancient Religious Sites and Modern Attractions

Kandy is Sri Lanka’s cultural capital, mixing ancient sites with modern attractions. The Ellerton Bungalow offers luxurious accommodations with 9 rooms and suites. Hikers can support local women by eating at the Hela Bojun Hala food court.

Nuwara Eliya: The Charming “Little England” of Sri Lanka

Nuwara Eliya is known as “Little England” due to its colonial architecture. The Nuwara Eliya hill country boasts a cool climate and tea plantations. Visitors can explore colonial-era bungalows and stay at Ceylon Tea Trails’ luxurious accommodations.

These Relais & Châteaux bungalows offer a taste of tea planter’s lifestyle. Guests can enjoy magical tea gardens, hills, and valleys during their stay.

Ella: A Hiker’s Paradise with Rugged Trails and Hidden Waterfalls

Ella is a hiker’s paradise with rugged trails and hidden waterfalls. The Amba Estate offers unique stays in a farmhouse and three cottages. This organic working farm collaborates with the local community, promoting sustainable tourism.

Trail Section	Distance	Highlights
Stage 3: Loolecondera to Thawalamthena	11.32 miles (6½ hours)	Scenic walk through tea plantations
Stage 7: Kotogala to Norwood	10 miles (6 hours)	Visit to the historic tea factory in San Pedro

The Dilmah tea company is a family-owned business in the region. They focus on ethical and sustainable practices. Hikers can visit Dilmah’s estates to learn about innovative tea production and community impact.

Conclusion

Sri Lanka’s Pekoe Trail offers a unique hiking experience in the Central Highlands. This 300-kilometer trail has 22 stages through diverse ecosystems. It covers tea plantations, cloud forests, mountains, and valleys.

Some trail sections will open in late 2023. Others will be ready for adventurers in 2024. The trail connects iconic towns like Kandy, Nuwara Eliya, and Ella.

These towns blend ancient sites with modern attractions and colonial architecture. Hikers can explore Sri Lanka’s heritage and culture along the way. They can visit famous tea estates and landmarks.

The Pekoe Trail won the Best Of The World 2024 Reader’s Choice Award. It celebrates Sri Lanka’s heritage and hospitality. Travelers can enjoy cooking classes and tea tastings at local shops.

Sri Lanka’s tourism industry sees growth ahead of 2024. The Pekoe Trail offers an adventure combining nature, culture, and Ceylon tea. Visitors can experience the warmth of Sri Lankan people and the beauty of hill country.