Alta Thoughts (April 2025)
By Rakesh Patel
It’s always a delight to visit Sri Lanka and spend time with fellow Board members at Teardrop Hotels. With eight boutique hotels across the island, there’s no shortage of insight from the ground.
The good news is that Sri Lanka is steadily recovering from multiple macro shocks – ranging from decades of conflict and political upheaval to the IMF bailout. In 2024, GDP grew a healthy 5% year-on-year, and the country welcomed 2 million international visitors, a 38% increase from the previous year. The introduction of free 30-day tourist visas has played a pivotal role in driving this rebound.
The 2024 election of Anura Kumara Dissanayake as President, alongside his party JVP securing a parliamentary majority, has not caused disruption. In fact, there’s growing optimism around his anti-corruption agenda. Meanwhile, the $2.9 billion IMF bailout program remains on track, with another tranche released in February.
However, challenges remain. The U.S. recently imposed a 44% tariff on Sri Lankan exports, though it’s currently under a 90-day suspension. With the U.S. accounting for 24% of total exports, this highlights the urgent need for Sri Lanka to diversify its export base, boost tourism, and strengthen domestic industries to weather future shocks.
Still, there is a growing sense of stability—and with that, the chance for both locals and visitors to enjoy the beauty and resilience of this remarkable island.
Below are a few of our recent thoughts posted on LinkedIn. Always good to hear your feedback. You can follow us directly on LinkedIn and go to our website.
Trump, Tariffs and Real Estate. The goal posts keep changing, but here are the clear indirect impacts and less clear direct impacts on commercial real estate, according to JLL.
Indirect effects include: the impact on GDP growth and correlation to CRE activity; rents can be indexed to inflation; uncertainty slowing decision making.
Direct effects on sectors: logistics and shipping from disruption to trade flows; retail as consumer good prices rise; construction mostly in US as material costs rise, maybe less for RoW; general funding costs uncertainty.
What Are Major Sustainability Challenges in Travel?
Will the “new world order” take some of the pressure off the travel industry over its significant sustainability challenges? Already we are seeing corporates and governments scaling back ambitions and targets.
The travel industry is grappling with reducing greenhouse gas emissions, adapting to climate change, and implementing effective policies. Although there are efforts to cut emissions, the travel sector’s carbon footprint is expected to increase by 25% to 2030.
Consumer pressure for change is still not strong enough, so stronger policies are essential for promoting sustainable travel, yet the pace of implementation and adoption is slow.
Wellness is the new status symbol — but the quest has its downsides
Modern success now means showcasing intense wellness routines — from fasting to fitness — as status symbols, replacing traditional bragging rights like being busy.
The wellness industry is booming, but not all trends are safe or effective. People risk injury or stress chasing longevity through unproven, expensive treatments and fads.
True wellbeing lies in the basics: eat healthy, exercise regularly, and build strong relationships — simple, proven, holistic habits that don’t require wealth or gimmicks.
Check out our Vikasa wellness in Thailand and Sri Lanka.
