Bailout package to tune of USD 150 Mn on the cards
ExCel: With the travel sector moratorium ending on December 31, 2022 Minister of Tourism Harin Fernando said that a bailout package to the tune of USD 150 million is on the cards.
In a special interview with Daily News Business at the WTM he said that now the tourism sector is picking up and the hotel owners still have loads of loans due to the bank. It is expected that this amount is over Rs 500 billion. The Minister said that the banking system has to be stable and the government can’t pressurize the banks to extend the moratorium for a longer period.
“Hence we have negotiated with a foreign donor agency to offer us USD 150 million so that this capital can be infused towards moratoria for the hotel sector.”
With the tourism picking up and infusion of this USD 150 million, the hotel sector can and will consolidate their businesses. A similar program was introduced to the SME sector of the hotel industry with the assistance of the Asian Development Bank very recently. Speaking at the well attended WTM global press conference, the minister explained the current situation of the country and assured the smooth flow of tourism sans queues longer power cuts or huge political unrest. He said that President Ranil Wickremsinghe is there to stay with a strong government and said within a period of 4 months the President converted the country from a totally collapsed entity to a stable economy.
He also appealed to politicians and people who are trying to destabilise the economic and tourism progress by organising uncalled for protests to stop them for about one year allowing the country to breathe normally. “Let’s do politics later.” He also said that special fuel passes for the tourism sector were issued, soft liquor licences were provided to assist tourism in Sri Lanka.
“We are aiming for about one million arrivals or maybe a little below that for this year. Tourism revenue has already passed the USD 1 billion mark for 2022.”
He also appealed to the international media to carry positive news on Sri Lanka which will help to boost the country’s tourism sector and the economy. In the current economic climate, Sri Lanka offers one of the best values when it comes to holidays. Hotels are competitively priced as they try to attract tourists back and as of early November, the exchange rate was Rs 413 per GBP in comparison to April 2022 when it was Rs145 to the Pound, meaning travellers’ money will go significantly further.
Additionally, what makes Sri Lanka perfect to visit in the current circumstances is the fact that the country is not overcrowded with tourists. Winter 2022 or early 2023 is best to travel before the crowds return. Visitors can have beaches and perfect waves to themselves, trek amongst monkeys without seeing another soul , and get their pick of the temples at sunrise. With a concerted effort being made to bring about the return of tourism to the country it won’t be long before the visitor levels are creeping up, but for now, visitors will have the rare opportunity to enjoy this lush island in peace.