"The low fares AirAsia is offering will create new demand and stimulate travel," Kathleen Tan, AirAsia's regional head of commercial, told a news conference.
"AirAsia's entry into Sri Lanka is good timing as the country enters a new era of peace.
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Last month government forces claimed victory over Tamil Tiger rebels, ending a military campaign by cornering rebel remnants and wiping out their top leadership in the northeast.
The end of the 25-year ethnic conflict is expected to lead to a revival in tourism, one of the sector's worst affected by the war.
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Sri Lanka Tourism chairman Bernard Goonetilleke said that with security concerns removed, "the next issue is connectivity which is very important as in previous years many airlines that came to Sri Lanka suspended their services."
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