📋 Tender Overview
Project Name
Sustainable Tourism Sector Development Program (Subprogram 1)
Project Number
57227-001
Country / Economy
Sri Lanka
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: Tourism Sector Development Program (Subprogram 1)
Concessional ordinary capital resources lending US$ 70.00 million
Loan: Sustainable Tourism Sector Development Program (Subprogram 1)
Ordinary capital resources US$ 30.00 million
Sector / Subsector
Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development
Gender
Effective gender mainstreaming
Description
The Sustainable Tourism Sector Development Program aims to support the Government of Sri Lanka in creating a resilient, inclusive, and sustainable tourism sector by boosting tourist arrivals and foreign exchange earnings from tourism, achieving at least $5 billion in foreign exchange earnings from tourism by 2025, and by leveraging private sector participation (PSP) through strategic reforms and targeted catalytic investments. The program combines a policy-based loan (PBL), to be delivered through a programmatic approach, with two subprograms and a project investment component. The proposed reforms under the PBL component address the binding constraints faced by the tourism sector and businesses; and are aligned with Sri Lanka's National Tourism Policy (NTP), a 10-year policy document with the vision of transforming the tourism sector as the major engine of inclusive economic growth and sustainable development. The investment component will support sustainable tourism and urban development of the two destinations to enhance visitors' experience, expand the green economy, and enhance urban livability.
The program is consistent with strategic objective 1 (strengthening public financial management and governance), 2 (fostering private sector development promoting green growth), and 3 (improved access to climate-smart public services and deepening inclusion) of the Asian Development Bank's (ADB) Country Partnership Strategy, 2024-2028 for Sri Lanka; and operational priorities 1, 2, 3, 4, 6, and 7 of ADB's Strategy 2030. It will support Sustainable Development Goal 11 (sustainable cities and communities) by protecting natural and cultural heritage, supporting local businesses, and fostering entrepreneurship, thereby generating revenue for the government and creating job opportunities for women and disadvantaged groups. It is aligned with the goals of the Paris Agreement and will support the Government of Sri Lanka in achieving its national climate change strategies as detailed in its National Adaptation Plan and nationally determined contribution.
Project Rationale and Linkage to Country/Regional Strategy
Tourism in Sri Lanka has suffered major challenges because of the Easter Sunday attacks in 2019 and the coronavirus disease (COVID-19) pandemic, leading to a decline in tourist ar
