Sri Lankan government gives debt moratorium and subsidized working capital for tourism sector
Sri Lanka’s State Minister for Finance Eran Wickremaratne has announced that Sri Lanka will give a one year debt moratorium and subsidized working capital for the tourism sector.
“This has been discussed with banks and the Central Bank is issuing regulations as we speak. These relief measures are with immediate effect,” Wickremaratne told parliament on Wednesday.
The working capital debt and interest will be treated as separate loans to be repaid from July 2020.
Up to 75 percent of the interest will be subsidized, the State Minister has noted.
Accordingly, big hotel and smaller operators will be entitled to the debt relief scheme, as will tour operators.
Meanwhile, Sri Lanka Tourism Development Authority Chairman Kishu Gomes has reportedly said that tourist arrivals are expected to fall 60 percent in May.
He is expecting arrivals to fall 30 percent in 2019, and recover within 13 months or sooner.
OSL take:
The relief package offered by the government of Sri Lanka to the tourism sector while assisting the businesses engaged in the sector, it would also encourage new businesses to enter the tourism industry. Tourists have once again started to visit Sri Lanka. Therefore, foreign businesses/investors could explore business opportunities in Sri Lanka’s tourism sector.
| Article Code : | VBS/AT/09052019/Z_2 |