Sri Lankan government to slash embarkation tax as part of promoting tourism industry
The government of Sri Lanka is reportedly looking at cutting the embarkation tax on tourists by US$ 10 in a bid to boost tourism in the wake of negative impact faced by the industry following the Easter Sunday attacks.
Vice Chairman of Sri Lanka Airport and Aviation Services Ltd Priyantha Kariyapperuma has been quoted as saying that the embarkation tax will lower ticket prices and make Sri Lanka more affordable to foreign visitors.
The budget for 2019 had earlier hiked the embarkation tax to US$ 60 effective from April 1, about Rs. 10,500 per passenger at the current exchange rate.
Malaysia charges 40 ringgit (about US$ 9.67 US dollar) or Rs. 1,750 per passenger and it is half that for members of the ASEAN.
According to reports, in an ex-Colombo ticket to Malaysia, about half the ticket cost is taxes.
The local media has reported that there has also been a proposal to cut down on handling fees as well.
Handing fees go to the national carrier, SriLankan Airlines, which is suffering financial and losses and is in the lookout for a foreign business partner.
OSL take:
The government of Sri Lanka has undertaken many programmes to boost the country’s tourism industry. The slashing of embarkation taxes would definitely help woo tourists to the country due to the reduction of air fares. Tourist arrivals to the country are on the increase now following the setback suffered in the aftermath of the Easter Sunday attacks. Foreign travel advisories by several countries have been relaxed and several international airlines have announced plans to resume flights to Sri Lanka. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka’s tourism industry.
| Article Code : | VBS/AT/08072019/Z_1 |