Top 30 Best Places in Southern Province, Sri Lanka to Invest in Airbnb & Short-Term Rentals (2025)

Unlock high-ROI opportunities in Southern Province, Sri Lanka‘s booming short-term rental (STR) market. This 2025 Airbnb investment guide from AirROI leverages cutting-edge Airbnb data analytics to pinpoint the most profitable cities for Airbnb and vacation rental entrepreneurs. Whether you’re scaling your portfolio or making your first STR investment, discover markets with strong rental demand, high revenue potential, and favorable regulations. We are committed to providing trustworthy insights based on comprehensive market analysis, and you can learn more about our rigorous approach to data accuracy.

Our STR market analysis dives deep into key performance indicators like monthly revenue, average daily rates (ADR), occupancy trends, property counts, and regulatory landscapes across Southern Province, Sri Lanka. We go beyond simple rankings to provide the context you need for informed investment decisions using reliable Airbnb data.

Explore the data-driven insights below to identify the premier short-term rental investment hotspots and high ROI Airbnb markets in Southern Province, Sri Lanka for 2025.

Our Data-Driven Methodology for STR Market Analysis

At AirROI, our market rankings and insights are powered by a robust methodology combining comprehensive Airbnb data collection with sophisticated STR analytics techniques. We strive to provide the most accurate and actionable intelligence for short-term rental investors.

Data Collection & Scope

• Global Coverage: We aggregate STR data from tens of millions of active short-term rental listings across platforms like Airbnb and Vrbo worldwide.
• Real-Time Metrics: Our systems track key performance indicators (KPIs) daily, including booking rates, nightly pricing (ADR), occupancy rates, and revenue.
• Regulatory Monitoring: We actively monitor and incorporate local short-term rental regulations, licensing requirements, and tax obligations into our market analysis.

Analysis & Ranking

• Proprietary Algorithms: AI and machine learning models analyze booking patterns, predict seasonal demand shifts, and identify emerging market trends in the STR space.
• Key Metric Evaluation: We evaluate markets based on a weighted combination of critical investment factors using our extensive Airbnb analytics:
  • Revenue Potential: Average Monthly Revenue and Average Daily Rate (ADR).
  • Market Demand: Occupancy Rate and booking lead times.
  • Investment Scale: Number of active properties and market growth trends.
  • Regulatory Environment: Assessed impact of local STR regulations on operational feasibility and profitability.
• Benchmarking: Performance is benchmarked against regional and global averages to provide context for vacation rental investment potential.

Key Metrics Explained

• Properties: The count of active short-term rental listings in the market.
• Monthly Revenue: Average revenue generated per property per month, a key indicator for Airbnb profitability.
• Daily Rate (ADR): Average nightly booking price.
• Occupancy: Percentage of nights booked out of total available nights, crucial for understanding STR demand.
• Regulation: An indicator of the local regulatory climate impacting Airbnb investment.

This rigorous approach ensures our recommendations are based on real-world performance Airbnb data and forward-looking market analysis, empowering you to invest smarter in the vacation rental market.