Is Sri Lanka still a viable destination for a relaxing holiday given these crieria?
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Everything depends on the way of your travel. Are you planning to travel by your own, with a tour guide or with a travel company?
If your answer is with tour guide or with a travel company you have zero things to worry about because they will take care everything.
If you travel by your own, then
Infrastructure, transportation, water, and sanitation developed a lot compared to 2012. Especially now that Sri Lanka has a highway network, you can halve travel time. There are also high standard new trains which are more comfortable and fast for travel. There are plenty of newly open hotels in the last 10 years. These day you can get lots of discounts because of low numbers of tourists.
I won't say zero crime/robberies here in Sri Lanka. Same as other countries, there are some incidents happening here, but mostly not related to tourists. You should know how to stay away from those issues. There are tourist police in every attraction. So if something happened to you, please go and talk to them. Typically Sri Lankan people are helpful and kind for tourists. I would say Sri Lanka is safer than most of Asian countries.
I can guarantee there is no food shortage. But, there is a medicine shortage in the government hospitals. If you need medical assistance always try to find a reputed private hospital. If you drive, there is a fuel limit one car can get per week. But, this is not applicable to tourists. You can get a special fuel pass in the airport and get unlimited fuel for your personal use.
There might be some small protests against the government in the Colombo area time to time. But mostly not in the other parts of the country.
The Sri Lankan rupee decreased a lot compared to USD. So it will be cheap for tourists who travel from other countries. But in Sri Lankan currency most stuff at least 50% more expensive compared to 2012. Especially imported stuff. Anyway, it will normalize because you get 2 times LKR for USD compared to 2012.
Anyway, there are less tourists here in Sri Lanka these days. So local people treat you better and try to give you a good price and good service for most of the things because they want to attract you.
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