Indians Now Choose Sri Lanka Over Kerala: RBI Official

COLOMBO (News 1st); Executive Director of the Reserve Bank of India Shri Ajay Kumar says Sri Lanka has rapidly emerged as a preferred destination for Indian tourists, with many travellers now choosing the island over India’s southern state of Kerala.

He said the ease of obtaining a visa for Indians, along with the waiver of visa fees, has contributed significantly to this trend. Sharing a personal experience, he added that he too had travelled to Sri Lanka without a visa during the time of the India, Pakistan match, after being informed that the system allowed visa-free entry.

Kumar also noted that a considerable amount of outward Foreign Direct Investment from India has 'found refuge' in Sri Lanka. While Indian investment is currently led by the government sector, he said there remains substantial potential for private-sector Indian investment to expand in the country.

He highlighted the strong demand in India for Sri Lankan products including tea, spices, natural rubber and textiles. Medical tourism from Sri Lanka to India is also growing rapidly due to the combination of cost efficiency and high-quality healthcare.

Kumar said Indian and Sri Lankan banks share significant financial and economic interests driven by bilateral trade, investment, tourism, and digital payment integration.

Reflecting on Sri Lanka’s balance-of-payments crisis, he said the Reserve Bank of India and the Central Bank of Sri Lanka worked closely together across several multilateral platforms. He emphasised that this collaboration plays a critical role in supporting regional financial stability in South Asia.