The Sri Lankan tourism sector has evolved and will continue to evolve immensely from where it was just over 10 years ago in 2009.
In a post-COVID world, regaining investor and consumer confidence may take some time. However, given the attractiveness of the country as a destination as well as its strong potential for growth, there is no doubt that the sector will get back on its feet.
With the continued development and maturing of the hotel and real estate markets in Sri Lanka, it will certainly be a destination to watch in the years to come.
Multi-million-dollar casinos are to be planned for Colombo to boost Sri Lanka’s ambitious hopes of becoming Asia’s new gambling hotspot, but the projects still face political and religious opposition.
Sri Lanka legalised gambling in with the aim of eventually luring cashed-up tourists to the island nation and boosting an economy battered by covid-19 and economic crisis.
Turning Mannar Island into a casino resort like Macau, well known as a gambling destination, could attract tourists and bring revenues to the country, this according to Sri Lankan Tourism State Minister Diana Gamage, who also backs the legalization of cannabis, over which she clashed with the opposition.
The idea of turning the island into a gambling mecca is controversial. Macau is the only city in China where gambling is legal (online betting is banned with repercussions for the entire region).
Since 2014, Macau Special Administrative Region has topped Las Vegas in terms of revenues at least seven times, with 60 per cent of its GDP depending on gambling, while other sectors of the economy are marginal.
It would be difficult, however, to transplant this model in Sri Lanka. Mannar has an ancient port and 16 landing points along its coasts. Fishing and dry-fish production are the mainstay of its economy.
About 36.7 per cent of the local labour force works in fisheries, and almost 40 per cent is employed in agriculture. Sri Lankan parents often threaten their children to send them to work on farms on the island as punishment.
In 2016 the island’s fish catch was 10,300 metric tonnes and dry-fish production exceeded 1,800 tonnes.
A development plan for the island already exists, approved by the Urban Development Authority for the period 2016-2030, with the areas that need immediate attention already identified.
To attract wealthy Indian tourists, when he was prime minister, Sri Lankan President Wickramasinghe promoted the construction of a link between the island’s main pier to Dhanushkodi and Palai, which in turn would be connected to Chennai via direct flights.
According to journalist and political analyst Kusal Perera, Gamage’s proposal is typical of the minister.
However, developing Mannar as a gambling hub would not only change the island’s economic vocation, but risks bringing businesses that typically revolve around casinos, on the margin of the law, like the sex trade.
In fact, human traffickers are heavily involved in Macau with illegal brothels, nightclubs, and massage parlours.
Sri Lanka’s State Tourism Minister lobbies to turn Mannar as casino Island
Special mechanism to provide relief to those displaced due to fire in Kajeemawatte, on President’s directive
A special District Coordinating Committee meeting was held under the direction of Prime Minister Dinesh Gunawardena on the instructions of President Ranil Wickremesinghe today (28) to provide relief to those displaced by the fire that broke out last night (27) in a housing complex located in Kajeemawatte, Thotalanga. The future plans regarding those displaced was also discussed at this meeting.
It was revealed at this meeting that 306 persons residing in 71 houses had been displaced as a result of the fire. It was also revealed that 60 houses were completely destroyed, while another 11 houses were partially damaged. Out of 306 displaced people, 200 are adults and 106 are children. So far, the Colombo District Secretariat has made arrangements to accommodate the displaced people at the Modara Garden Community Hall and the Kelani Nadee Viharaya.
With the intervention and support of the Disaster Management Center, Colombo Municipal Council, Madampitiya Grama Niladhari Division, Police and the tri forces, steps have been taken to continue to provide basic facilities including food and water to the displaced persons.
Further, health facilities are maintained under the Regional Health Services Director. The District Secretary also stated during this discussion that with the assistance of several non-governmental organizations, including Sarvodaya, the required necessities and dry food rations were provided to the affected families.
Director General of the Urban Development Authority Mr. Prasad Ranaweera, pointed out that since 2007, Thotalanga Kajeemawatte has been maintained as an intermediate camp by the Urban Development Authority, and by the end of 2014, houses were provided to all the residents.
However, the Urban Development Authority also pointed out that since 2015, the land has been occupied by squatters from time to time.
During the discussion, it was decided that these houses caught fire on 03 occasions within the past two years, and that a formal and impartial investigation should be carried out immediately regarding the incident yesterday (27).
Accordingly, a committee headed by Major Pradeep Undugoda (Rtd) and Colombo District Secretary Pradeep Yasaratne was appointed. Other committee members include Colombo Divisional Secretary, Director General of the Urban Development Authority, General Manager of Housing Development Authority, Government Inspector, and Superintendent of Police in charge of the area, OIC of the Police Station of that area and Madampitiya Grama Niladhari Officer.
The committee was also informed to submit an urgent report to the President and the Prime Minister within 07 working days regarding the cause of the incident, future development of this area and proposed measures for the residents.
It was also directed that all displaced school children should be sent to school as usual from next Monday (October 03) and to be provided with necessary text books, exercise books, uniforms and shoes, and to provide required health facilities for pregnant mothers, mothers and women. It was also decided to continue the supply of cooked food and essentials in temporary shelters and to provide them all basic facilities.
Prime Minister Dinesh Gunawardena and Ministers Prasanna Ranatunga, Bandula Gunawardena, former Ministers Gamini Lokage, Sarath Weerasekera, Members of Parliament Eran Wickramaratne, Yadamini Gunawardena, Madhura Withanage, Major Pradeep Undugoda (Rtd) and Colombo District Secretary Pradeep Yasaratne attended this discussion.
President Media Division (PMD)
Overseas travel ban imposed to Rohitha Abeygunawardena temporarily lifted
The Fort Magistrate yesterday (28) temporarily lifted the overseas travel ban imposed to former Minister Rohitha Abeygunawardena, based on a request made through his lawyers to fly to Italy to attend to an educational affair of his child and to fly to the United Kingdom for a business affair.
Accordingly, the former Minister was allowed to leave Sri Lanka from October 10 to November 20 at a bail of Rs. 01 million, as ordered Fort Magistrate Thilina Gamage.
An overseas travel ban was imposed to Abeygunawardena based on the allegations in connection with the May 09 assault on Galleface protesters.
MIAP
SLFP won’t join National Council: Sirisena
The Sri Lanka Freedom Party (SLFP) will not be joining the National Council, a working committee established for the very first time in Parliament, said Party Leader and former President Maithripala Sirisena, responding to reporters after attending a discussion held at the SLFP Headquarters yesterday (28).
The National Council is set to convene for the very first time today (29).
MIAP
Gloom looms over export sector amidst SL economic contraction
The latest bi-annual Export Barometer Survey indicates that exporters are increasingly concerned about the implications of the expected contraction of the Sri Lankan economy in the latter half of 2022 on export orders, with SMEs particularly vulnerable to the intensifying economic crisis.
The third in a series of surveys conducted by the Ceylon Chamber of Commerce (CCC) and the United States Agency for International Development (USAID) – supported Partnership for Accelerating Results in Trade, National Expenditure and Revenue (PARTNER) activity, this survey received responses from 157 exporters of goods and services.
The majority of these respondents were SME firms, with women-owned and/or women-led firms accounting for 20%.
The survey, compiled in July-August, builds on the findings from previous reports published in August/September 2021 and February/March 2022 and tracks trends and sentiments related to Sri Lanka’s export performance, challenges faced by exporters, and ways in which firms are continuing to navigate the economic crisis.
It also presents measures required to enhance export competitiveness and the outlook for the export sector for the second half of 2022.
Pessimism is despite earnings from merchandise exports in August growing year on year by 5.4% in July to a record $ 1.16 billion and cumulative earnings in the first seven months increasing by 13% to $ 7.67 billion.
Most exporters predict the economy to fall moderately to severely in the second half of 2022, and a sizable percentage anticipates a similar trend in export orders. The latter trend indicates a considerable shift in exporter sentiment since the previous survey in February/March 2022.
Exporters continued to be resilient in the face of an intensifying economic crisis, particularly in the export of goods, which grew 14% in the first half of 2022 compared to the same period in 2021.
However, the survey highlighted that larger firms performed better in export revenue growth, capacity utilization, and sourcing of new export opportunities compared to SMEs.
Exporters across all categories of firms, including women-owned and/or women-led businesses, faced challenges in meeting their existing orders due to fuel and power shortages, while increases in transport costs and policy uncertainty worsened the situation
Firms also highlighted that the current economic situation will have a long-term negative impact on buyer confidence in Sri Lankan exports.
Employment trends turned negative in the first half of 2022, with more firms looking at cost-cutting measures. Most firms were facing attrition led by employees migrating due to the current crisis.
Nevertheless, 64% of firms are not expecting a change in their workforce size in the second half of 2022.
Exporters requested facilitation measures to fulfil export orders, with reduced focus on requests to improve export competitiveness.
Minimizing power shortages and maintaining political stability were the top priorities. Women-owned and/or women-led businesses and SMEs continued to request more facilitation in exploring new markets and access to trade/export finance.
Service exporters were more optimistic that their businesses would see moderate to high growth in the second half of 2022 and that the economy would improve compared to goods exporters (31% compared to 22%).
Sri Lanka Original Narrative Summary: 29/09
- President Ranil Wickremesinghe calls on Emperor Naruhito at Imperial Palace in Tokyo: also holds bilateral discussion with Japanese PM Fumio Kishida.
- Foreign funded Advocata Institute says electricity tariff increase is necessary because prices charged to consumers are below cost, leading to large deficits: claims the energy subsidy is financed through “money printing” which contributes to the on-going balance of payments crisis.
- Cardinal Ranjith demands gloomy Christmas: wants tourism leaders to provide for the poor instead of spending money to celebrate Christmas: criticises the illumination of the City of Colombo.
- Former Foreign Minister Professor G L Peiris questions legality of the High Security Zones declared in terms of the “outdated” Official Secrets Act: controversial gazette expected to be rescinded shortly.
- National Freedom Front Leader and former Minister Wimal Weerawansa says the economic crisis is persisting because of the debt default announcement made by CB Governor Dr Nandalal Weerasinghe as soon as he assumed office.
- Minister Mahinda Amaraweera says Wildlife Department spends Rs.2.8 bn annually to provide free fire-crackers to repel wild elephants to safeguard villages in vulnerable areas: government incurs an additional interest charge of Rs.398.4 bn in 5 months up to August ’22, after the Central Bank increased its policy interest rates by a massive 7%.
- Chairman, Elections Commission says an official announcement will be made early next year on the date of the Local Government Election: also says the youth voters’ registry is being updated now.
- Residents blame drug addicts for the fire that gutted at least 60 houses in suburban area of Kajeemawatte where there are about 300 wooden houses.
- Former President Maithripala Sirisena says he has been informed by certain police officers that girls from very respectable families have become prostitutes.
- President Ranil Wickremesinghe and Indian PM Narendra Modi discuss Sri Lanka’s debt restructuring, in Tokyo, at a meeting that lasted around 10 minutes: President says Sri Lanka won’t do anything that will jeopardize India’s security.
FitsAir to launch international flights from Sri Lanka soon .
FitsAir, promoted by Fits Aviation, a member of the Aberdeen Holdings group, said that commercial operations will commence from 5th October.
The privately-owned airline, operating A320-200 aircraft, has opened bookings for its international flights, connecting Colombo to Dubai, Male and Trichy.
In a significant move, veteran professional and top aviation expert Peter Hill has been appointed to the helm and to drive operations, along with a team of seasoned Sri Lankan professionals.
Top aviation expert Peter Hill, the Vice President, Passenger Operations, FitsAir, said that the airline also hopes to launch flights from Ratmalana to Jaffna and from Jaffna to India.
“FitsAr will cater to the needs of the modern Sri Lankan traveller who wants competitive fares, an in-flight service that is efficient without any ‘frills’ , he added.
It is combined with options of baggage allowance, where you do not pay for the weight of baggage which you carry – where there is no obligation to pay the full fair if your baggage is less in weight” he explained
The premise is that we do not want to waste a passenger’s time, money or energy in the process of travelling,” added Hill, who went on to note that FitsAir, due to its pricing competitiveness, will make air travel a viable option for many Sri Lankans.
“However, in true Sri Lankan hospitality, all passengers will get a complimentary refreshment pack, although substantial meals, beverages and snacks will be available for purchase on board plus pre-bookings.”
A free checked-in baggage allowance of 30kgs will be provided to all customers, and a free carry-on bag of 7 kgs.
FitsAir will also offer reduced fares for baggage of no more than 20 kgs. Passengers can purchase excess baggage at the airport, subject to space availability.
The airline has been operating through its predecessor, Expo Aviation, predominantly in the cargo sector for the past 25 years.
A year ago, the owners decided on the scheduled regional passenger market and now have a fleet of three Airbus A320-200 aircraft in its fleet.
It is part of FiTS Aviation (PVT) LTD, a member of the prestigious Aberdeen Holding Group of Companies. It is privately owned and run by a team of seasoned Sri Lankan professionals, together with a couple of well-known expatriates from the local aviation community.
From the outset, FitsAir has been designed to provide affordable scheduled air travel to customers between Sri Lanka and destinations between Sri Lanka and destinations within SAARC, GCC and SEAsia.
All the Airbus A320-200 aircraft are registered in Sri Lanka and are operated under the jurisdiction of the Director-General, Civil Aviation of Sri Lanka. The technical and cabin crew are all Sri Lankan and comprise a unique blend of seasoned professionals and fresh, fully-qualified younger faces.
It plans to commence services between Colombo’s Ratmalana Airport and Jaffna and then develop a mini-hub in Jaffna, to serve a range of South Indian cities are also underway. Flights out of Ratmalana and Jaffna would be served with 70-seat turboprop aircraft.
A range of domestic services are also in the plans, based around Ratmalana Airport working with Tour Operators/Hoteliers, to provide swift transfers and short-duration sightseeing tours. These services would use 12-seater Cessna Caravan aircraft
SL apparel industry pledges fullest support to ILO’s Better Work initiative
The apex body of the apparel industry, the Joint Apparel Association Forum (JAAF) pledged absolute support to the International Labour ( ILO’s) Better Work initiative demonstrating the industry’s deep commitment to prioritizing people and their well-being.
The ILO recently launched Better Work (BW) with the objective of strengthening the resilience of industry using Better Work’s extensive experience, tools and partnerships exemplifying a human-centered recovery and growth.
Recognizing that the apparel sector in Sri Lanka starts from a relatively high bar, the BW programme for Sri Lanka is not a roll out of the programme done in other countries but is bespoke to Sri Lanka allowing companies to build on the work already done in this area
One of the industries in focus in Better Work, is the apparel industry, Sri Lanka’s largest exporter employing nearly one million both directly and indirectly across 350 manufacturing plants island wide.
Better Work concentrates on occupational safety and health, gender diversity and inclusion including leadership skills training and career development for women workers, empowering Small and Medium Enterprises (SMEs) with leadership and financial literacy training and an SME factory improvement toolkit.
The apparel industry’s internationally acclaimed trust and reputation is anchored in the unique niche of prioritizing ethical labour practices and JAAF believes strongly that Better Work is an opportunity to partner with local and international stakeholders to strengthen the commitment of ensuring decent work environments built on gender equality, safety, health, inclusion and holistic empowerment.
Speaking at the formal launch of the event, Minister of Labour and Foreign Employment, Manusha Nanayakkara extended government support to the initiative stating,
The program is a significant step in promoting better OSH practices and standards so that the already high standards of the apparel sector could be further elevated.
This will in return send a strong message to the key stakeholders of the industry ecosystem about our commitment to the apparel industry”.
The industry encourages plants to implement welfare measures to best suit the requirements of their workers from as early as June of 2022.
Approximately 80% of apparel manufacturers made cost-of-living adjustments to salaries over and above their annual increments. In some instances, these represent a 25% increase from 2021.
USA provides US $10 million worth of medicine for Sri lanka
Prime Minister Dinesh Gunawardena expressed his gratitude to Direct Relief USA for its donation of life-saving medicines worth US$ 10 million to hospitals in Sri Lanka.
Speaking with the Direct Relief USA Emergency Response Manager Chris Alleway and Senior Communication Specialist Maeve O’Connor at the Prime Minister’s office in Colombo on Monday (26), he said the medicines provided by the Direct Relief USA will save many lives of Sri Lankans.
The Prime Minister said the health authorities would immediately supply these medicines to the hospitals faced with shortage. He pointed out that Sri Lanka boasts of an excellent health service with adequate hospitals and medical personnel across the country and the main drawback is the shortage of some medicines due to the economic crisis.
While the government took steps to import medicine immediately, such donations from friends of Sri Lanka would be of much help to fulfill immediate requirements, he added.
Emergency Response Manager Alleway said that Direct Relief USA selected medicines needed at Sri Lankan hospitals after close coordination with the Ministry of Health, Government Medical Officers Association (GMOA) and the US-based Medical Help Sri Lanka Global Alliance.
Communication Coordinator of Medical Help Sri Lanka Global Alliance Paddy Dissanayake, together with the members of Sri Lanka Associations jointly work with various humanitarian aid organisations in the USA, United Kingdom, Canada, Malaysia and several other countries and obtained essential emergency medicines for Sri Lanka.
During the month of September, Medical Help SL Global Alliance in collaboration with Direct Relief USA donated several consignments of medicines worth US $ 20.3 million (SL Rs 7. 3 Billion).
Direct Relief has also dispatched emergency medical supplies recently for delivery to Sri Lanka, including 22 pallets of insulin in partnership with Life for a Child.
The insulin stock has been distributed to eleven hospitals and healthcare facilities around the country in coordination with the Sri Lanka College of Endocrinologists.
This shipment was an annual supply of long-acting insulin for 212 children and young adults under 25 managing Type 1 Diabetes in Sri Lanka..
Keheliya indicted for using public money to pay household bills
Minister Keheliya Rambukwella and two others were indicted for misappropriation of public funds at the Colombo High Court today.
The case assigned by the Bribery Commission was called before the Colombo High Court today.
After handing over the indictment, the High Court decided to release the minister and the defendants on bail and the case is scheduled to be heard again on November 3rd.
The minister has been accused of using public money to settle the telephone bill at his home.