SL, this year's holiday hotspot

Sri Lanka and Spain emerged as the best value destinations for holiday spending this year, coming out equal cheapest of 42 destinations surveyed in the latest Post Office Worldwide Holiday Costs Barometer.

UK's seventh annual Post Office holiday money report found that Spain topped the Post Office Worldwide Holiday Costs Barometer for the first time alongside Sri Lanka.

At pounds 36.14 for eight items, including an evening meal with drinks, Spain and Sri Lanka's holiday cost totals were under half those of 21 other destinations and a quarter the cost in Australia and South Korea, the most expensive countries surveyed.

The Barometer collates the cost of eight items: a cup of coffee; bottle of local beer; can of Coca-Cola; glass of wine; 1.5L bottle of mineral water; 200ml bottle of SPF15 sun cream; packet of 20 Marlboro Lights; and a three-course evening meal for two adults with a bottle of house wine.

Despite resort price rises, Sri Lanka is named as one of 10 holiday hotspots for 2013.

Post Office head of travel money Andrew Brown said: "There are growing signs that UK holidaymakers now check the value of sterling and the costs they face in overseas resorts before booking. "The destinations which benefited last year were those where the power of the pound put more money in the pocket or where the price of meals and drinks meant holiday cash stretched further - and often a combination of the two. We expect to see the same pattern emerging in 2013." Third cheapest was the Czech Republic at £39.17, followed by Indonesia (£40.47), Vietnam (£43.20), Bulgaria (£45.10), Portugal (£45.54), Mexico (£48.93), Hungary (£51.45) and Turkey (£52.89).