Tourism is one of Sri Lanka’s most important economic sectors, generating employment, foreign exchange, and opportunities for regional development. At the same time, it faces growing risks from climate change, including altered rainfall patterns, rising temperatures, flooding, storm surges, and other extreme events that directly affect visitor experiences, infrastructure, and operating costs.

This report brings together insights from across the tourism industry to understand how businesses perceive and respond to climate risks. Drawing on survey responses from large enterprises, destination management companies, and micro, small, and medium-sized enterprises, it highlights key vulnerabilities, barriers to action, and the strategies currently being adopted to strengthen resilience.

The findings underline the uneven distribution of risk, with MSMEs facing greater challenges due to limited financial and technical capacity. They also show that while many businesses are taking steps such as staff training, sustainable practices, and emergency planning, uptake of financial risk transfer measures remains low. The report outlines a set of priority actions, including improved access to climate data, affordable insurance, technical assistance, and targeted support, to enable the sector to adapt effectively and safeguard its long-term sustainability.