Sri Lanka presents incentive packages to attract international airlines to Mattala Airport
The government of Sri Lanka is looking at introducing a special relief package targeting international airlines as an incentive for the respective airlines to schedule flights to the Mahinda Rajapaksa International Airport (MRIA) in Sri Lanka’s Southern Province.
A Cabinet paper in this regard is to be submitted to the Cabinet of Ministers, according to local media reports.
Sri Lanka’s Tourism Minister Prasanna Ranatunga has been quoted as telling the local media that the objective was to attract international airlines to the airport in Mattala.
According to the proposed package, international airlines that have never operated to MRIA will not be charged the Airport Emigration Tax of US$ 60 for a period of two years from the date of commencement of operations.
The proposal further includes the waiving off of landing charges and parking fees for a period of four years. According to the plan, landing and parking charges will be 100% exempt in the first year, 75% in the second year, 50% in the third year and 25% in the fourth year.
The Minister has reportedly stated that if any airlines enter into an agreement to operate flights to MRIA at least once-a-week, the Government will consider offering a 50% discount on first year landing and parking charges for those airlines at the Bandaranaike International Airport (BIA) in Katunayake as well.
OSL take:
Sri Lanka’s economy is on the path to recovery after facing the challenges of the global Covid 19 pandemic. The country’s tourism industry is recording a gradual increase in tourist arrivals to the country while business travellers looking for business/investment opportunities have also added to the list. The number of flights operated by international airlines to Sri Lanka are on the increase indicating an increase in travellers arriving in the country. The government of Sri Lanka has introduced many packages and incentives to further attract travellers to the country. The business/investment opportunities in Sri Lanka are on the increase given the island’s positioning as an emerging business destination in the South Asian region. The country’s geographical positioning in the Indian Ocean has also helped Sri Lanka serve as an air and maritime hub in the region. Given Sri Lanka’s economic expansion, foreign businesses/investors could explore the opportunities in Sri Lanka.
| Article Code : | VBS/AT/28092021/Z_1 |