Sri Lanka Tourism Promotion Bureau to invest Rs. 1 billion to develop northern Palaly Airport
Sri Lanka Tourism Promotion Bureau (SLTPB) has reportedly stated that it will invest Rs. 1,050 million to assist in the refurbishment and the development of the Palaly domestic airport into an international airport in the country’s Northern Province.
Managing Director of SLTPB, Johanne Jayaratne has told the state owned English, Daily News that this amount would be released from the Tourism Development Fund.
“It would be released to the Ministry of Civil Aviation in three installments,” he has been quoted as saying.
He has stated that with the granting of free visas to 48 countries including India, the Palaly international airport would get attention from Indian airlines and tourists. “This will be major boost for the tourism industry in the North,” he has noted.
Meanwhile, an Airport Aviation official has been quoted as saying that approvals from the International Air Transport Association (IATA) have been received along with IATA code JAF to operate international flights. “There is enthusiasm from the Indian aviation sector to commence flight operations to Palaly,” the official has said.
According to reports, IndiGo, an Indian low-cost airline headquartered at Haryana, India and the largest airline in India by passengers carried and fleet size, with a 48.1% domestic market share as of June 2019 is expected to be the first international airline to operate to Palaly.
Sri Lanka’s Prime Minister Ranil Wickremesinghe recently said the Cabinet of Ministers had approved a special discounted package for international airlines, which includes reduction of Ground Handling Charges, Aviation Fuel and the Embarkation Levy for six months.
OSL take:
The development of Sri Lanka’s northern Palaly Airport to a regional airport operating several flights to India would definitely give a further boost to Sri Lanka’s trade and tourism sectors. Sri Lanka and India already have a free trade agreement in place that could be fully explored with increased connectivity between the two countries. Therefore foreign businesses/investors looking at doing business with India could explore the possibility of setting up base in Sri Lanka. Also Indian and Sri Lankan business could explore opportunities of forming business partnerships.
| Article Code : | VBS/AT/06082019/Z_7 |