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President says Tourism Industry would significantly contribute to SL’s forex earnings in coming decade

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PMD: During the “Transcending Borders – Transforming Lives” program organized by the Indian Tourism Federation at the Bandaranaike International Memorial Conference Hall in Colombo yesterday (06), President Ranil Wickremesinghe expressed his belief that the tourism industry would significantly contribute to the country’s foreign exchange earnings in the coming decade. The President highlighted that comprehensive plans had already been formulated to enhance Sri Lanka’s appeal as a tourist destination and stressed that promoting tourism could lead to an increase in per capita income.

President Ranil Wickremesinghe also emphasized the importance of collaborative efforts among all the BIMSTEC countries to develop the BIMSTEC region into a thriving tourism hub, transcending national borders.

Addressing the event, Mr. Gopal Bagle, the Indian High Commissioner to Sri Lanka, announced the expansion of flights between Chennai and Jaffna, which now operates only four times a week, to begin operations on a daily basis starting from July 16. He further mentioned ongoing efforts to resume the long-discontinued ferry service between the two nations, which had remained inactive for several decades.

Following is the speech delivered by President Ranil Wickremesinghe;

“We’ll assure you that Sri Lanka’s tourism, the new plans that our Minister Harin is going to implement, will certainly make it a good stay, a wonderful stay, an incredible stay. Now many of you, some of you, will, after this conference, be visiting different parts of Sri Lanka.

I would like to tell you there are things that you should not miss. Go to Trincomalee and see the Dakshinakailash. Come to Kataragama and see the shrine of Lord Vellamurugan. It’s over 2000 years old, one of the oldest standing Hindu shrines in the region. I was there for the festival a few days ago, and there were over 200,000 people there. Or visit Nallur in Jaffna to see the festival that’s starting there. This is a part of our culture, and it’s worth a trip to see some of these, just as much as you’ve gone and seen the hill country and others.

High Commissioner Gopal, yes, you’ve seen Ella, but I’ve got to show you something else. The impact of the Ukraine war in Sri Lanka, where a Russian Chef is running a Japanese restaurant in Weligama. There’s something more we are going to add, as I talk with the Minister, there will be a military tattoo in August together with the Nallur festival and the Kandy Perahera, not the normal arms but something like the Edinburgh tattoo which will be full of dance and music. And in January, we have the Galle Literary Festival. This time it’s going to be a gala one. Every town in Galle, in the southern province, will have its own festival. Hirikatiya will have a beach discotheque, and there will be modern jazz and modern art. In Matara, there will be a number of classical music events, and in addition to that, in January, you can also listen to Andrea Bocelli singing in Colombo. So that’s what we are adding on. We are trying to make tourism new and make more use of the potential.

When we faced bankruptcy in Sri Lanka, now that we are getting out of it and debt restructuring is taking place, we still have to remember that the balance of trade is not in our favour. So we have to ensure a positive balance of trade in time to come. And one of the means of raising funds which is not debt-creating, is tourism. So exploit it to the full. Use it, and we are looking at new tourism from the 2.5 million we have to go to 5 million to start with. Look at the upper end of the markets. Why not have $500 a night to $1,000 a night? We have got to learn from Maldives, the smallest of the South Asian countries. We are trying to put 7 more golf courses in, make Nuwara Eliya the centre of golf.

We want to have large resorts. We have identified one next to Dedduwa, over 1000 acres with water, good for very environmentally friendly tourism. Another one is next to Horton Plains, another 900 acres which will be another forest reserve where you can have 5-star luxury accommodation. There are many other places where yachts and yachting will start, with Mannar as one of the headquarters, throughout the Jaffna Lagoon, down into Trincomalee and further down. We will exploit the railway in different ways, just like you have gone up to Ella. Moreover, we want to hand over a large number of plantation bungalows for boutique hotels. So there are going to be more and more items that we will add on to it. Food items, dance items, to make Sri Lanka truly known as a worthwhile tourist destination. We expect to attract many visitors from Asia, including India, East Asia, South Asia, and West Asia, because it is easier for them to travel. We will open up the Eastern Province, and there will be apartments available for purchase where you can directly stay near the beaches of the Eastern Province. Why not? If you want to have a villa, we will make arrangements for that too, for buying and holding. Why not? Come here, this is the place.

The laws will be changed to accommodate our plans. So I thought this is the way we should proceed. And I was thinking to myself, why didn’t we do it earlier? And I looked at what we are doing in the region. Of the three regions in Asia, of our size, East Asia, Southeast Asia has far more tourists than us. South Asia together may not have as many tourists as one or two of the East Asian or Southeast Asian countries or Western Europe. Why is it? India is good with domestic tourism. Are you going to rely solely on domestic tourism? When you can earn so much money and foreign exchange, more than what you target for, if you attract international travellers. In the next 10 years, per capita income will increase, people will travel around, and look for eco-friendly tourism. Why don’t we have it?

So why don’t we make our whole BIMSTEC area one borderless tourist area? Is that what you want? Transcending borders? Not just Sri Lankans traveling to India or Indians traveling to Bangladesh. No. It’s one tourist area for anyone who wants to come from outside. We have so much to offer. I have seen some of your assets. I have driven from Srinagar to Ladakh, to Leh. Staying in Kargil was not the best of accommodations, but the potential you have for development. I have been to many other areas of India as well.

What is Biryani? You might think of it as just one dish, but I think of it in terms of 60-70 dishes. Each area has its own Biryani. And if you go to Batticaloa, you can have a 24-egg Biryani. Now, why don’t we market it? All of us here.

The Biryani is a dish. When you come here, there are so many dishes to try. Look at how Thais have marketed their food. A country of 70 million. Why can’t we do the same? All you have done is market Chicken Tikka Masala, which is not even from India. Let’s make Biryani the signature dish for our region. People who want to come and taste it will have enough Biryani restaurants around the world. Why don’t we have Michelin-star chefs specializing in Biryani? Look at the potential we have.

We are looking at a cruise, a ship that has come from India to Sri Lanka. Why don’t we open up to BIMSTEC? Why don’t we use the Bay of Bengal for cruises? We are bigger than the Caribbean. Look at the potential. If people from East Asia, India, Southeast Asia, West Asia, and Africa come together, why travel all that way? Look at how we can develop and showcase the places in Sri Lanka. Look at Mahabalipuram. See Odisha. These are the places Europeans and others must see. Look at Cox’s Bazar. Explore the Andaman Islands. They are already popular among Indians. When this happens, prices in the Andaman Islands will go up. Look at Myanmar. They can travel down to the Andaman seas, all the way down to Singapore. If we start now and plan ahead, in 10 years’ time, we will have a completely new industry.

Why don’t we have travel arrangements? We can arrange it. You can go to Lumbini, and the next flight can bring you to Buddhagaya. See those places, and the next flight can bring you to Colombo, so you can visit the Temple of the Tooth and the Bo-tree. We need to arrange our connectivity in such a way. Why not climb up to the base camp and then come down to an island in the Maldives? These are the unique holidays that no one else can offer. We can think of so many other holiday options. Look at all the different dance forms we have. The various dancers in different regions. This is the potential we have to attract millions of tourists every year to our region. Why not utilize it? And this is my idea, that BIMSTEC should be one big tourist area. We can also showcase Biryani and other cuisines.

Look at cricket. When we were small, everything was decided at the MCC. Today, cricket is identified with India. If we have achieved such a big success in cricket, why can’t we come together and make tourism equally successful? Let’s go upmarket and charge more. It means our rural people will have a better income. Let’s all work towards it. Let’s think about it. Maybe all of you here from the Sri Lankan industry and from India can learn something. There’s something we can learn from the Maldives, and we can talk to Nepal. Let’s look at it and develop a thriving tourist industry. A place where millions of people visit our region, making it prosperous for the people in our countries.”

Addressing the gathering Indian High Commissioner to Sri Lanka Gopal Baglay said;

“I am inspired by the presence of the Honourable President, and if I may mention, it was on his visit last weekend that the diplomatic envoys embarked on an unforgettable train journey through some of the most beautiful parts of Sri Lanka, aboard a vintage train called the Viceroy Special.

I mentioned this not just to reminisce about the beautiful journey through the misty forests, plantation areas, and picturesque landscapes of Sri Lanka, but because it reminded me of two things. One is the resemblance of the area to Vasuri and Nilgiris, which some of you might be familiar with, especially those who have come from India. The altitude is roughly the same as Visuri, but due to the tea plantations on both sides of the railway tracks, it gives the impression of passing through Nilgiri. However, this is not the reason I am mentioning it. When we reached our destination, a place called Ella, which is famous for, among other things, the world-renowned nine arches bridge, I couldn’t believe my eyes. Just six months ago, when I visited, there were hundreds of tourists on either side of the railway track and all over the place.

There were tourists from India, Sri Lanka, and other countries. For some of us on the train, it was a stark reminder of how different that moment was from about a year ago.

Mr. President, your presence here is, to me, a vote of confidence in the present and the potential, as well as a reiteration of the partnership between the people of India and Sri Lanka for progress. It signifies a step towards even closer cooperation for the prosperity of both nations.
The theme “Transcending Borders, Transforming Lives,” is precisely the spirit of the India-Sri Lanka relationship that has brought these two countries together as civilizational twins. We are all aware of the geographical proximity of India and Sri Lanka, but over the course of millennia, this proximity has been layered with history, culture, civilization, religions, languages, music, films, cricket, democracy, diversity, plurality, respect, peace, and harmony.

When you visit Sri Lanka, it also reflects the values that we cherish and share, as demonstrated by Buddha and Mahatma Gandhi.
I express my gratitude to the Minister of Tourism and the invaluable guidance and leadership of President Ranil Wickremesinghe.

Over the past few months, we have not only resumed the Chennai-Jaffna flights, which used to operate four times a week, but these flights will now operate every day starting from July 16th. We are also working on resuming the ferry services, which have been inactive for decades, and the idea of an international cruise from India to Sri Lanka is no longer just a concept.

The use of Indian currency in Sri Lanka is a boost to tourism, as Indian tourists can now conveniently use their currency for payments. Additionally, efforts are underway to enable digital payments between the two countries. This will not only facilitate transcending borders and transforming lives but also build upon the legacies that form our common heritage.”

The Sri Lanka Tourism Promotion Bureau extended an invitation to host the Conference of Travel Agents of India 2023 in Colombo, from the 6th to the 9th of July. This prestigious event is particularly noteworthy as it marks the 67th time that the Indian Tourism Federation, in collaboration with the Sri Lanka Domestic Tour Operators Association, organizing the conference and exhibition.

The Travel Agents Association of India (TAAI) has appointed its members as tourism ambassadors, and their involvement in previous summits has consistently led to a significant four-fold increase in tourist arrivals to the host destinations. In light of this success, the conference features a two-day business session and buyer-seller meetings, at the Cinnamon Grand and Shangri-La hotels.

With a strong turnout, 500 members of the Indian Tourism Federation participating in this highly anticipated event. The promotion of Sri Lanka’s tourism industry has been a focal point of discussions throughout the conference. Additionally, 50 Indian journalists have joined the gathering to cover the proceedings, highlighting the significance of this occasion.

In conjunction with the conference, the Sri Lanka Inland Tourism Operators Association (SLAITO) and its member associations have meticulously organized a post-summit tour encompassing popular tourist destinations such as Bentota, Galle, and Kandy. This initiative aims to showcase the beauty and diversity of Sri Lanka’s attractions to the attendees.

The Travel Agents Association of India (TAAI) Colombo Summit has garnered support from four major airlines, namely SriLankan Airlines, Air India, IndiGo, and Vistara. These partnerships will facilitate seamless travel arrangements for the participants and further enhance the success of the summit.

Dignitaries and key figures attending the event included Nimal Siripala de Silva, Minister of Ports and Maritime Affairs, Harin Fernando, Minister of Tourism and Lands, and Ms Jyoti Mayal, President of the Indian Travel Agents Association, among others.

Travel ban on SDIG Deshabandu Tennakoon lifted

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By: Isuru Parakrama

Colombo (LNW): The travel ban imposed on Senior Deputy Inspector General (SDIG) Deshabandu Tennakoon in connection with the assault on the peaceful protesters at the Galleface ‘Aragalaya’ agitation site has been lifted.

The travel ban on Tennakoon was lifted by the Fort Magistrate Court yesterday (07) based on a request made by his lawyers in the backdrop where he is not cited as a suspect to the event.

Today’s weather conditions expect to follow showers at several places

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By: Isuru Parakrama

Colombo (LNW): Showers will occur at several places in Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, and a few showers may occur in the North-Western province, announced the Department of Meteorology in its daily weather forecast today (08).

Showers or thundershowers will occur at a few places in Uva province and in Ampara and Batticaloa districts during the evening or night, the statement added.

Fairly strong winds about (40-45) kmph can be expected at times in western slopes of the central hills, Northern and North-Central provinces, and in Puttalam, Hambantota and Trincomalee districts.

Marine Weather:

Condition of Rain:
Showers or thundershowers will occur at a few places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle.
Winds:
Winds will be south-westerly and speed will be (25-35) kmph. Wind speed may increase up to 50 kmph at times in the sea areas off the coast extending from Trincomalee to Puttalam via Kankasanthurai and Mannar and sea areas off the coast extending from Hambantota to Pottuvil. Wind speed may increase up to (40-45) kmph at times in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle.
State of Sea:
The sea areas off the coast extending from Trincomalee to Puttalam via Kankasanthurai and Mannar and sea areas off the coast extending from Hambantota to Pottuvil will be fairly rough at times. Sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle will be moderate. Increase of swell waves (about 2.5 – 3.0 m) can be expected in the sea areas off the coast extending from Chilawto Matara via Colombo and Galle. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

The Netherlands to hand over looted artifacts from Sri Lanka in Colonial era

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By: Staff Writer

Colombo (LNW): Two Dutch museums are handing hundreds of cultural artifacts back to Indonesia and Sri Lanka — from a richly decorated cannon to precious metals and jewelry — that were taken, often by force, in the colonial era.

The government announced the planned restitution of 478 “cultural objects” Thursday. Some Western nations are returning looted artifacts and other objects as part of a reckoning with their often brutal colonial histories.

A Berlin museum announced in January it is ready to return hundreds of human skulls from the former German colony of East Africa.

In 2021, France said it was returning statues, royal thrones and sacred altars taken from the West African nation of Benin. And last year, Belgium returned a gold-capped tooth belonging to the slain Congolese independence hero Patrice Lumumba.

“This is a historic moment. It is the first time that, based on the advice of the Advisory Committee on the Return of Cultural Objects from Colonial Context, we are returning objects that should never have been in the Netherlands,” said State Secretary for Culture and Media Gunay Uslu.

The committee was set up in 2022 to assess requests by countries for restitution of artifacts in state museums. It is considering more restitution requests from Indonesia, Sri Lanka and Nigeria.

One of the highlights of the looted objects being returned to Sri Lanka is the Cannon of Kandy, a ceremonial weapon made of bronze, silver and gold, and inlaid with rubies. The barrel is decorated with the symbols of the King of Kandy: a sun, a half-moon and a Sinhalese lion.

The cannon has been in the collection of the Rijksmuseum, the national museum of art and history, since 1800. The museum said it was looted by Dutch East India Company troops during the siege and plunder of Kandy in 1765.

Six artifacts belonging to the Kandy Kingdom, which had been stored in museums in the Netherlands for over two centuries will be returned to Sri Lanka.This decision was taken by the Netherlands Government.

The six objects to be returned to Sri Lanka are a richly decorated, large-caliber bronze-cast gun known as the cannon of Kandy, which is currently on display at Amsterdam’s Rijksmuseum, as well as gold and silver ceremonial swords, a Singhalese knife and two guns.

Director General of the Department of National Museums Mrs. Sanoja Kasthuriarachchi mentioned that the Dutch government has issued the related gazette.

Sri Lanka to introduce a proper mechanism to regulate online businesses

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By: Staff Writer

Colombo (LNW): The need for a proper mechanism to regulate online business has been discussed in the Parliamentary Committee to raise the value of the Ease of Doing Business Index. The discussions were conducted when the committee convened in Parliament recently.

Currently, Sri Lanka does not have a local body to regulate e-Commerce businesses. Increased competition from international eCommerce sites such as booking.com and Airbnb have resulted in demands by the Tourist Hotels Association of Sri Lanka (THASL) for the government to consider regulating eCommerce businesses.

There is still no formal mechanism to regulate business activities conducted on the Internet, tax payments of companies involved in them, and many other factors. The committee discussed the necessity for steps to be taken in this regard.

It has also been suggested that a legal framework as well as a digital service tax should be introduced to regulate these businesses.

Meanwhile, the need to promote digital transactions instead of currency notes and coins was also discussed in the Parliamentary Committee to raise the value of the Ease of Doing Business Index.

E-commerce in Sri Lanka has grown significantly with the increased use of the internet and smart devices, especially during the COVID-19 pandemic.

According to the Information and Communication Technology Agency (ICTA) of Sri Lanka and the United Nations Conference on Trade and Development, Sri Lanka’s Digital Economy was 4.37 percent of GDP in 2022.

The increase has been driven by increased utilization of e-payments, e-banking, online medical consultations, and e-sports. Approximately 43 percent of the estimated 11 million internet users have made online purchases.

The Western Province is the largest e-commerce market geographically, accounting for around 50 percent of total orders.

Products purchased most frequently online are electronics, apparel, and personal care products. Around 56 percent of the internet users’ state they purchased a product or a service after seeing an advertisement on the Internet.

All commercial banks have online banking services. Travel companies, hotels, and a few large retailers have online trading services. eCommerce companies offer customers in Sri Lanka access to millions of global products.

The government has committed to increase the use of online applications and payments for government services. Additional government web portals for filing of tax returns, payment of taxes, renewing of revenue licenses are also available.

Most of the global eCommerce sites, including PayPal, are available in Sri Lanka for overseas purchases but have limitations due to an inadequate refund mechanism and inward receipts.

A 2.5 percent stamp duty applies to usage of credit cards issued by Sri Lankan banks for transactions converted into a foreign currency. Transactions in local currency are exempted from this duty.

Draft of proposed Employment Act to be made public soon

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By: Staff Writer

Colombo (LNW): Minister of Labour and Foreign Employment Manusha Nanayakkara says the first draft of the proposed Employment Act will be made public soon.

Taking to Twitter, the lawmaker mentioned that the document has already been submitted to the National Labour Advisory Council.

The draft of the proposed Employment Act was prepared after a comprehensive stakeholder consultation with the objective of achieving inclusive economic growth, he added.

He said that new laws are expected to be brought to make it mandatory to obtain the consent of the majority of the membership of a trade union (TU) if any trade union takes action.

He noted that that if there is an executive council of any trade union, 25% of its membership should be reserved for women.

He also said that the draft includes several new laws which are not included in the prevailing labour laws such as the laws to prevent discrimination in the workplace, the enactment of a five-day work week and laws to make flexible working hours according to the employee’s wishes.

“We have identified the need to bring legal provisions that provide opportunities to do part time jobs. So now, the opportunity has been given for everyone, especially younger ones to do so and laws will be brought to secure the same.

In addition to this, we have included the required provisions to provide the necessary space for female employees to work at night, subject to certain conditions,” he said.

According to the Minister, a National Wages Council will be established with the aim of introducing a minimum wage system according to current and accepted methods.

Speaking further, the Minister also mentioned that special attention has been given to the preparation of legal provisions regarding paternity leave and he said that he is working to introduce a uniform system regarding the amount of overtime work and the relevant payments to be made.

“Considering working from home as a new trend and with the idea of reducing expenses, we hope to take measures to make it popular among the public.

However, this draft includes the provisions to give employees the opportunity to work from home if it is possible. Also, legal provisions are brought to formalize foreign employees working in Sri Lanka. Laws are made to regulate it. Also, laws related to trainees and apprentices will be brought and correct interpretations regarding those laws will also be presented to prevent the exploitation of trainees and interns,” he said.

Nanayakkara also said that this draft will propose new laws to oblige the employer to deduct membership fees from the salaries and to send the union dues for the unfair labour practices carried out by the trade unions as it is currently accepted by the law. In addition to that, the Minister said that an electronic wage system will also be introduced with the new labour laws.

Crisis-hit Sri Lanka finally strives to deal with bloated public sector

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By: Staff Writer

Colombo (LNW): Sri Lanka is now undergoing unprecedented structural economic reforms with regard to revenue generation and cost cutting and pruning of bloated public sector workforce on the directions of President Wickremesinghe who rescued the country from possible economic collapse.

Undertaking economic reforms that would streamline the economy has been a long term desire on the part of the president and seen during his past stints as prime minister, official sources aid.

His radical measures have been widely criticized by the opposition political parties who created a ‘Goni billa’ ,a scary man for Sri Lankans compelling to oust the then Premier Wickremasinghe who suffered defeat at the elections that followed.

Typically, the reform measures he presents is based on the ‘trickle down’ theory which was miss interpreted by selfish politicians in highly corrupt politics like in Sri Lanka ,brainwashing minds of the who had to be satisfied with the scraps falling off the table, economic analysts said

Once again, he is taking up the challenge of implementing unpopular economic measures such as cutting subsidies, downsising public sector workforce, increasing taxes and privatising state owned enterprises. They added.

Sri Lanka is looking at ways to trim the public sector by allowing state workers to go on leave for other jobs both locally and abroad as a worsening economic crisis compels the island nation to reduce government expenditure.

Sri Lanka has more than 1.5 million public sector employees at present, the size having doubled over the past 15 years, according to official data. Efficiency in the public service is lower compared to that of Sri Lanka’s peers in Asia, despite there being a public servant for every 14 citizens.

At present the public service has shrinked by 135,000 to 1.393 million by the end of 2022 from 1.528 million in 2020 by removing some of them from service or allowing to vacate their posts or voluntary retirements.

According to the State Minister of Finance Ranjith Siyambalapitiya, the government has spent Rs 956 billion on State sector salaries, while Rs. 701 billion is estimated for salary payments in 2023.

As of 2023, the defence sector is estimated to claim nearly half (48%) of state salaries tri forces 32 percent ,health 17 percent and education 9 percent.

A special “conception paper” issued by the Manpower and Employment Ministry recently has suggested extensive public sector expenditure and job cuts claiming that that more than 50 percent of government income was being used to pay salaries and allowances to 1.7 million public sector employees at that time.

This warrants the government to cut more than 850,000 public employees to increase the productivity in the public service.

Other job curtailment and budget cutting plans, which will push a large numbers public sector workers and their dependents into poverty and starvation, are currently being discussed by the cabinet of ministers.

India as last resort lender to permit Sri Lanka to repay debt over 12 years

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By: Staff Writer

Colombo (LNW):India is likely to grant a 12 year moratorium to repay its debt to help ease the financial burden on the island nation, India’s Export Credit Guarantee Corporation (ECGC) Ltd’s chairman-cum-managing director M. Senthilnathan said, Indian news agencies reported.

This debt repayment concession offered by India to the island nations comes at a time, where President Ranil Wickremesinghe is visiting India for a day on July 21 to consolidate ties with New Delhi, which gave nearly US $ 3.5 billion in emergency aid to stabilize the island nation.

President Wickremesinghe will call on the entire Indian leadership from President Droupadi Murmu and Prime Minister Narendra Modi apart from holding delegation-level talks.

In 2022, as Sri Lanka’s economy entered into its biggest crisis since independence, the emergency financing extended or facilitated by India amounted to about $4 billion. Sri Lanka used about $3.3 billion during the course of the year, especially in the tumultuous first seven months. India became Sri Lanka’s lender of last resort even as the island entered sovereign default.

Sri Lanka, facing its worst economic and political crisis in over seven decades, owes $7.1 billion to bilateral creditors— $3 billion owed to China, $2.4 billion to the Paris Club and $1.6 billion to India.

“But the interest rate will come down. This is a situation induced by inflation and because of the fallout of (Ukraine) war. You accommodate them for the next 5-6 years and later the markets will open up,” Senthilnathan added.

Earlier this year, the International Monetary Fund (IMF) approved a $3 billion loan programme for Sri Lanka to help stabilize its economy and begin restructuring its debt.

The island nation received an immediate disbursement of about $333 million under the 48-month programme approved by the IMF.

Senthilnathan added that the National Export Insurance Account, managed by the ECGC, has received close to ₹4,500 crore worth of claims from exporters facing default in countries such as Sri Lanka, Zambia, Suriname and Ghana which faced extreme economic hardships after covid-19 and the Ukraine war.

Besides, its reserves have grown 26% to a 17-month high of $3.5 billion in May, helped by stronger remittances and tourism earnings.India had earlier extended a $1 billion credit line for Sri Lanka by a year.

The credit line, part of a $4 billion emergency assistance extended by India during the peak of Sri Lanka’s financial crisis early last year, was scheduled to end in March.

Sri Lanka has requested India to settle payments due to the country under the Asian Clearing Union mechanism and credit lines given in 2022 over 5 years, Indrajit Coomaraswamy, an advisor the island’s government said.

Sri Lanka is negotiating with India to settle the money over a 5-year period, Coomaraswamy, a former central bank governor disclosed.

Sri Lanka’s central bank owed the ACU 2.0 billion US dollars to the Asian Clearing Union according to a yearend debt statement, issued by the Finance Ministry. Sri Lanka owned India, 1,621 million dollars according to ACU data by year end, excluding interest.

Minister of Transport Meets Colombo Plan Secretary General to Discuss Economic Stability and Development

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Dr. Bandula Gunawardhana, the Minister of Transport, Highways, and Mass Media, held a special discussion with Dr. Benjamin P. Reyes, the Secretary General of the “Colombo Plan,” at the Minister’s office. During the meeting, Minister Dr. Bandula Gunawardena provided an overview of the current situation in the country and highlighted the Government’s ongoing efforts to ensure stability.

Emphasizing the Government’s commitment to driving the economy forward, Minister Dr. Bandula Gunawardena underscored the special attention given to digitization as a catalyst for economic growth and development.

In response, Dr. Benjamin P. Reyes commended Sri Lanka on its successful return to economic stability. He expressed the willingness of the Colombo Plan to support the Government’s development programs and initiatives in drug control efforts.

During the discussion, the representatives of the Colombo Plan extended an invitation to the Minister to participate as the Guest of Honour at the upcoming 72nd celebration of the “Colombo Plan” process, scheduled to be held on July 12.

Indian Tourist Arrivals in Sri Lanka Surge, Promising Recovery for Tourism Sector

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According to recent data released by the Sri Lanka Tourism Development Authority, the island nation has witnessed a significant influx of Indian tourists, signaling a positive upturn in Sri Lanka’s tourism industry. In the month of June alone, over 26,000 Indian tourists visited Sri Lanka, contributing to a total of 116,000 Indian arrivals by the end of June. With a total of 624,000 tourist arrivals, India remains the leading source market for Sri Lanka’s tourism, as reported by DD.

Following setbacks such as the 2019 Easter Sunday attacks, the COVID-19 pandemic, and subsequent lockdowns, Sri Lanka has been diligently working to revive and promote its tourism sector. To attract Indian visitors, Sri Lanka has identified 50 sites associated with the Ramayana, aiming to enhance tourism ties between the two countries.

In parallel, India and Sri Lanka have been actively exploring initiatives to promote the use of local currencies for trade settlements, fostering economic cooperation. Earlier this year, Indian High Commissioner Gopal Baglay highlighted the importance of creating mechanisms for Indian tourists to transact in Indian rupees, which would further elevate Sri Lanka’s appeal as a preferred tourist destination.

In May 2023, Sri Lanka’s tourism industry showcased promising growth, earning a total of $131 million. According to the Central Bank of Sri Lanka, this represents a significant increase compared to May 2022, with tourism income experiencing a remarkable growth of 202 percent. The number of foreign tourists visiting Sri Lanka also witnessed a substantial rise, with 83,309 tourists arriving in May 2023, marking a 175.8 percent growth compared to the same period in the previous year.