Sri Lankan government reduces several levies to assist tourism industry revival
The Cabinet of Ministers in Sri Lanka has reportedly granted approval this week for a revision of several charges including ground handling, aviation fuel and embarkation levy to be reduced for six months to assist the tourism industry
The country’s tourism industry is on a revival path following the Easter Sunday attacks.
Sri Lanka’s Government Information Department has stated that the country’s Prime Minister Ranil Wickremesinghe had presented the relevant Cabinet paper on Sunday.
The Cabinet paper had proposed to instruct the Ceylon Petroleum Corporation (CPC) to sell aviation fuel at the same price as the Chennai airport.
The Sri Lanka Tourism Development Authority (SLTDA) together with the Prime Minister’s Office, Sri Lanka’s Tourism Minister John Amaratunga and the Civil Aviation Authority of Sri Lanka had reportedly prepared the Cabinet paper for the reduction of ground handling charges, aviation fuel, and the embarkation levy for a period of six months.
In 2018, approximately 2.3 million tourists had arrived and spent a total of 25 million hotel nights in the country while generating an income of US$ 4.4 billion. More than 98% of tourists to Sri Lanka are currently brought by international airlines. By April 2018, 29 airlines were serving Sri Lanka offering 300 flights per week, the SLTDA has said in a statement.
“The positive and immediate action taken by the Government, especially by Prime Minister Ranil Wickremesinghe, Minister John Amaratunga and the Civil Aviation Director General H.M.C Nimalsiri, in response to the urgent request made by the Sri Lanka Tourism Development Authority, comes at a critical time and is most appreciated,” SLTDA Chairman Johanne Jayaratne has been quoted as saying.
OSL take:
Sri Lanka’s tourism industry is on the revival path following the negative impact of the Easter Sunday attacks. Apart from the promotional campaigns undertaken by the tourism authorities, the latest decision by the decision of slashing several key levies would give a further boost to Sri Lanka’s tourism industry. The maintaining of Sri Lanka as Lonely Planet’s destination of the year 2019 and the relaxing of travel advisories issued on the country by several foreign countries have resulted in tourists returning to the country. Statistics reveal that the tourist arrival in Sri Lanka on a growth path since the month of May. This is the ideal time for foreign businesses/investors to explore business/investment opportunities in Sri Lanka’s tourism industry given the incentive packages offered by the Sri Lankan government.
| Article Code : | VBS/AT/09072019/Z_5 |