Sri Lanka often surprises travelers with its costs. A very modest guesthouse can charge more than a poolside stay in Vietnam, and Western meals come with price tags that feel out of step with the portions. On top of that, sightseeing quickly adds up once you factor in the steep entry fees.
When you’ve paid $35 to climb Sigiriya Rock and shelled out another $30 to wander Polonnaruwa, you start to wonder what the mismatch between basic quality and big prices is all about. But Sri Lanka didn’t just wake up one day and decide to charge more. The reason this island can leave travelers muttering “how much?!” is more than meets the eye.
A Crisis That Spilled Into Tourism
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In 2022, Sri Lanka’s economy collapsed into a full-blown currency crisis. Foreign reserves dried up, and left the government unable to pay for vital imports like fuel, medicine, and food. Inflation soared, daily blackouts spread, and protests escalated until crowds forced their way into government buildings.
For ordinary people, the rupee’s collapse meant spending more for the same dollar’s worth of goods. Prices jumped almost overnight, and visitors found themselves paying inflated rates for everyday basics that had once been cheap.
The collapse was caused by a series of government mistakes. They kept the rupee fixed at an unrealistic rate, spent down foreign reserves to defend it, and borrowed heavily in foreign currencies. In 2021, a ban on chemical fertilizers cut rice and tea production, which increased imports and reduced exports, right when the country had no dollars left.
Tourism, once a reliable earner of dollars, was already limping after the 2019 Easter bombings and the pandemic. By the time the war in Ukraine cut off Russian and Ukrainian arrivals, two major tourist markets, the system buckled. Even by early 2025, Sri Lanka had yet to fully recover, with inflation easing, but prices for tourists were still well above regional averages.
Why Visitors Feel It Directly
For a country scrambling for cash, tourists have become one of the few steady sources of foreign currency. That explains why entry fees for heritage sites and national parks are so high compared to neighboring countries. A ticket to Sigiriya, at $35, now costs more than double the $16 entry fee for the Taj Mahal in India.
Hiking Horton Plains, known for its “World’s End” viewpoint, sets you back about $30, with little in the way of facilities. These are deliberate strategies to bring in money. Hotels and restaurants followed the same logic. Backpacker-style hostels are rare, so guesthouses and boutique stays dominate the market, and prices have drifted upward.
Western dishes, often poorly executed, cost far more than a meal of rice and curry, because ingredients are imported and priced in hard currency. Meanwhile, cocktails in touristy hotels can run £15–20 ($19–25), similar to London prices. Even if transport remains cheap—the iconic train rides still cost just a few dollars—the big-ticket experiences quickly pile up.
A Country Worth Seeing Still
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Sri Lanka hasn’t lost its appeal. The ruins of Anuradhapura, wildlife safaris, southern beaches, and the train through tea country are still unforgettable. However, the gap between expectations and costs often surprises travelers. The government is still trying to recover from economic freefall, where attracting foreign money is a lifeline. Visitors must be prepared until tourism reforms or exchange rates stabilize.