Sri Lanka’s tourism and banking sectors reach consensus on relief package for tourism sector
The Finance Ministry of Sri Lanka has chaired a meeting on Thursday (16) to bring about a consensus between the tourism and banking sectors on the proposed relief package for the country’s tourism sector.
The government of Sri Lanka is currently engaged in a programme to assist the quick revival of the country’s tourism industry following last month’s Easter Sunday attacks.
The banks have reportedly agreed that they will do away with “case by case” basis approach in deciding the one-year moratorium on capital and interest repayment on all performing facilities, but opt for “eligible” and “approved/registered” travel and tourism businesses.
According to the local media, those with trade licences can avail of the offer via a provisional registration with the Sri Lanka Tourism Development Authority, as well as those who supply products and services to registered companies.
The authorities are scheduled to release the list of eligible and approved sectors that can avail themselves of the relief package as a means to survive, following the setback caused by the Easter Sunday terror attacks on three churches and an equal number of five star hotels, which killed nearly 260 people including 45 tourists and injured over 500, a local media report stated.
The media has reported that the decisions reached at the meeting is a big breakthrough for the travel and tourism industry, who protested against an earlier Central Bank directive to banks, which gave discretion to financial institutions to consider relief on a “case by case” basis, whereas the industry wanted across the board blanket support.
Accordingly, another breakthrough was extending the support via finance companies with whom hotel and travel firms have existing leasing commitments as well.
It was also agreed that banks will extend the moratorium to loans of travel and tourism industry employees.
The Central Bank is scheduled to issue a fresh directive to banks to operationalize the relief.
OSL take:
Sri Lanka’s tourism sector has been given priority status in the revival of the country’s economy following last month’s Easter Sunday attacks. The government of Sri Lanka has already introduced a relief package to the tourism sector and now banks have also agreed to the relief package. Sri Lanka tourism has also commenced a promotional campaign. Given the expectancy of reviving the country’s tourism industry within two to three months, foreign businesses could look at business/investment opportunities in Sri Lanka’s tourism sector.
| Article Code : | VBS/AT/22052019/Z_2 |