Strong tourist arrivals to Sri Lanka have boosted beer sales, with demand brimming over during the high season in popular tourist spots, the island's top beer maker said.

Sri Lanka has seen a strong increase in budget tourists who interact directly with the small businesses and enterprises. "Unlike in the past, tourists are not confining themselves to the formal HOTEL sector," Chief Executive of Lion Beer (Ceylon) Plc Suresh Shah told shareholders in the annual report.

"They are seeking alternate ACCOMMODATION options from high end villas to less expensive rooms in the informal sector. "These trends are clearly reflected in the sales of Your Company’s brands through the retail and on-premise trade in tourist pockets. Volumes through these channels pick up sharply during the tourist “season”."

"Overall, tourism contributed significantly to Your Company’s sales performance." Shah said the high margins maintained on beer sales by star classed HOTELS meant that those tourists prefer to obtain more beer from retailers in the vicinity.