As Sri Lanka sets its sights on attracting over 3 million tourists in 2025 and generating USD 5 billion in revenue, SITA, the leading global provider of IT and digital solutions for the air transport industry, highlights how advanced technology can play a transformative role in shaping the nation’s aviation and tourism future.
In 2024, Sri Lanka welcomed 8.88 million passengers, marking a 17.6% year-on-year increase. In the first half of 2025 alone, arrivals reached 4.9 million, up 16% compared to the same period in 2024. Alongside this, aircraft movements surged by 20% in 2024, while the Bandaranaike International Airport (BIA) has embarked on a major expansion and modernisation program. These developments underscore the urgency of investing in seamless, efficient, and secure passenger journeys powered by digital solutions.
The aviation industry globally recorded historic highs in 2024, with absolute IT spend soaring to an estimated USD 37 billion, the highest since 2019. Much of this investment is being channelled into cloud migration, AI, and cybersecurity to strengthen operations and enhance passenger experience. Airlines worldwide have adopted data platforms at a rate of 90%, reflecting the industry’s commitment to building more intelligent, integrated systems.
SITA’s recent industry survey shows that 50% of investments now target advanced data-driven technologies, including generative AI, computer vision, and large language models. These solutions are already streamlining operations, from cyber defence to customer service, and paving the way for more sustainable aviation through innovations such as cruise optimisation and Sustainable Aviation Fuel (SAF) adoption.
With global passenger traffic hitting a record 5.3 billion in 2024, baggage systems faced unprecedented pressure. Yet, mishandling rates improved by 8.7%, falling to 6.3 bags per 1,000 passengers, a 67% drop since 2007. Still, mishandled baggage costs airlines USD 5 billion annually.
SITA’s Baggage IT Insights Report highlights how automation and real-time data are reshaping this landscape. Self-service bag drops, electronic tags, IoT, and GPS-enabled tracking are becoming standard. Currently, 42% of passengers benefit from real-time baggage tracking, a figure projected to rise to 82% by 2027. For Sri Lanka, where growth in inbound tourism will strain existing systems, these innovations are critical to maintaining efficiency and traveller confidence.
Sri Lanka’s tourism-driven economy requires secure yet welcoming borders. Governments worldwide are adopting digital border management solutions to manage risks from immigration, customs, security, and public health. SITA’s Advance Passenger Processing (APP) solution enables real-time interactive data exchange with airlines, allowing authorities to screen travellers before boarding. This ensures that high-risk individuals are prevented from travelling, while legitimate passengers enjoy a smoother, faster arrival experience. Already deployed in over 70 countries, including major transit hubs like Doha and Dubai, APP could play a pivotal role in securing and streamlining Sri Lanka’s borders.
The adoption of ICAO’s Digital Travel Credential (DTC) standard is another game-changer. By enabling biometric verification and digital passports, governments can eliminate data errors, enhance security, and improve passenger flows. For a destination targeting rapid tourism growth, digital identity and border innovation will be key enablers. As BIA undergoes modernisation, SITA is uniquely positioned to support Sri Lanka’s aviation stakeholders with:
Passenger Flow Management — streamlining check-in, boarding, and baggage handling with touchless and self-service solutions.
Data and AI Integration — leveraging predictive analytics to optimise airline operations, improve in-flight services, and strengthen cybersecurity.
Baggage Management — delivering real-time tracking and automation to reduce mishandling and associated costs.
Border Security and Facilitation — deploying APP and digital credentials to balance security with traveller convenience.
Sustainability Solutions — supporting airlines with tools for cruise optimisation, SAF adoption, and emissions reduction.
These solutions are designed to create a resilient aviation ecosystem that meets the expectations of modern travellers, while helping Sri Lanka achieve its revenue and passenger growth targets.
As global air traffic is projected to reach 8 billion passengers by 2037, Sri Lanka’s ability to integrate advanced digital travel solutions will be vital in ensuring it remains competitive as a regional hub. By embracing innovations across baggage, borders, and passenger flows, the country can secure its position as a leading tourism destination, while ensuring every journey is smarter, safer, and more seamless.
