The new power cuts risk the revival of tourism on Sri Lanka’s southwestern beaches during its peak winter season, just as visitors have begun to return to the island since the Covid-19 pandemic broke.

A hit to the sector, which contributed to about 5% of the economy before Covid-19, may also mar plans to bolster the nation’s finances amid payments for costlier imports and dollar debt obligations, which have led to concerns of a sovereign default.

However the government will be taking every possible step to maintain uninterrupted power supply to tourism zones to avoid any inconvenience for tourists visiting the country.

Tourist arrivals to Sri Lanka have exceeded 155,000 so far, led by Russians, despite the challenges emanating from the global Covid-19 pandemic, Tourism Ministry data showed.

As per provisional data released by the Tourism Ministry, Sri Lanka has received 155,375 travellers as of 21 February.

During the first 22 days of February, a total of 73,048 tourists visited Sri Lanka, with an average of over 3,000 tourists per day.

Amidst a surge in its COVID cases, Russia continues to dominate among the top tourist source market for Sri Lanka with 24,889 followed by India with 20,561, UK 15,846, Ukrainian 12,501 and Germany 11,127.

In addition, tourists were also received from countries such as France, Poland, Kazakhstan, Australia and Maldives as of 21 February.

Given the sharp rebound in tourist arrivals this month, Tourism Minister Prasanna Ranatunga last week renewed monthly expectations to 200,000 travellers

Sri Lanka has registered 2,300 SUVs and imported 10,000 tractors in 2021, data show as import controls prevented highly taxed imports like cars and three wheelers from coming into the country.

Sri Lanka banned imports of most automobiles including three wheelers and motorcycles which give large revenues to the state, as money printing ratcheted up from February 2021 (monetary stimulus) creating forex shortages.

Meanwhile imports of low taxed items, such machinery and construction material, was encouraged including through artificially low interest rates, creating vicious cycled of revenue losses and more money printing, which in turn creates more forex shortages.

Sri Lanka had registered 2,384 SUVs in 2021 and 176 in January 2022, Sri Lanka’s vehicle registry data analyzed by JB Securities, a Colombo-based equities brokerage show.In January 176 SUVs were registered.

“SUV\crossovers recorded 176 units in Jan up from 100 units the previous month but down from 199 units 12 months ago,” the research house said in a note to clients.

“Mahindra accounted for 118 units through its KUV 100 model – a small cross over vehicle assembled locally by Ideal Motors. The records also show registration of 28 Toyota Land Cruiser jeeps – they were a gift from the government of Japan to the Sri Lanka Police.”

Knocked down vehicles components pay sharply lower rates of tax, reducing tax revenues to the state.

Sri Lanka had also registered 8,067 large tractors and 2,116 small tractors in 2021.

Regardless of the administration in power Sri Lanka’s policy makers and economists, steeped in Mercantilist ideology control trade after printing money to create forex shortages.

Then a series of cascading policy errors – also based on Mercantilist dogma – including banning highly taxed items worsen the economic crisis, drives the country into currency collapses and the International Monetary Fund.

Meanwhile Sri Lanka’s central bank Governor Nivard Cabraal has suggested that people who earn foreign exchange overseas be allowed to import cars and also pay taxes in US dollars to the state.

As part of legal tender laws to encourage domestic money, countries usually make citizens pay taxes in domestic money. However when money is printed making outflows exceed inflows, governments find it difficult to convert the rupees into dollars to pay overseas obligations.

Taking taxes directly into the state coffers in US dollars drops the intermediate stage.

In 2021, Sri Lanka imported 1.66 billion US dollars of food and beverages, another 418 million US dollars of wheat and maize.

In 2021 machinery and equipment imports topped 2.8 billion US dollars and building materials 1.2 billion US dollars.

Sri Lanka’s prevailing dollar shortage is severely impacting the country’s publishing industry which may grind to a halt in March as a result of price hikes and shortages in imported paper and printing materials, a collective of authors said.

Speaking at a press conference organised by Mass Guiding Artists, a collective affiliated with the opposition National People’s Power (NPP), writer Kamal Perera said that thousands of jobs in the industry are now in danger as a result of Sri Lanka’s economic crisis.

“There is no paper in the market. There are no dollars to import paper.

“In three months, the price of a ream of paper has gone up by 900 rupees. A ream cost about 5,200 rupees in December; it is now difficult to find one in the market even for 6,200 rupees,” said Perera.

Sri Lanka is currently going through one of the worst economic crises in its history, compounded by a severe dollar shortage and rising inflation that some economists have blamed on excess money printing.

According to the writer, there is also a shortage in plates and other equipment used in printing.

He complained that the government is not interested in finding solutions and doesn’t seem to consider the emerging crisis in the industry to be a serious matter.

“The government has no interest in this whatsoever. It is not in the interest of corrupt leaders to have a learned populace,” said Perera.

He called for slashed taxes and other measures to save the industry.

“In former Prime Minister Sirimavo Bandaranaike’s time, there was a quota for writers and publishers. 

They can remove taxes for imported paper. Alternately, they can produce paper locally. There are several factories in our country, but they don’t manufacture paper for book printing,” said Perera.

Perera expressed suspicion that the apparent lack of interest on the part of the authorities could be an attempt to outsource book printing to a foreign country.

“We wonder if a proposal will be made that we outsource printing to China, which is a nation that’s very friendly to this government and is a global leader in printing. Or even to Singapore or India,” he said.

Lanwa Sanstha Cement Corporation Ltd., a state-of-the-art cement manufacturing facility that is expected to be one of the region’s largest, is set to commence operations in early next month. 

The factory, which spans 63 acres, is located in Hambantota’s Mirijjawila Export Processing Zone.

A BOI venture, the total capacity of Lanwa Sanstha Cement Corporation Ltd would be 4 million tons with Phase 1 producing 2.8 million tons per annum.
One of the facility’s strengths is the emphasis on cutting-edge technology, with all mixing being done with European machinery for minimal wastage.

Commenting on the completion of Phase 1 and commissioning of the plant, Lanwa Sanstha Cement Corporation Chairman Nandana Lokuwithana said: “We are very excited to start operations in March 2022 at a juncture when the whole world is returning to normalcy after two years of pandemonium due to the global pandemic. 

“In many ways, we’re optimistic that this venture will be a major boost to the economy in terms of technological advancement, foreign revenue and a solution to the shortage of cement which is crippling the local construction sector currently.”

He said that this facility incorporates a host of sophisticated features including a 2.4 km covered conveyor belt connecting the port and factory for increased efficiency, minimal wastage and pollution.

The state-of-the-art factory also features a fully automated Stacker Reclaimer Yard and two Bridge Type Ship Unloaders for ease of handling cargo, shifting from labour-intensive to tech-oriented aligning local industry with global standards.

Lanwa Sanstha Cement Corporation Ltd. Executive Director Dammika Lokuwithana said: “Once operational, Lanwa Sanstha Cement Corporation Ltd., is expected to meet the needs of all major construction projects in Sri Lanka, including the Port City and expressways, by producing the full range of cement products including Ordinary Portland Cement (OPC), Portland Composite Cement (PCC) and Blended Hydraulic Cement (BHC).”

Lanwa Sanstha Cement Corporation is a sister company of Sri Lanka’s foremost manufacturer of steel, Ceylon Steel Corporation Limited. The Group intends to extend the same product philosophy of quality and innovation to their new endeavour in a bid to secure market dominance. 

The project is expected to revive the local construction industry by fulfilling the domestic demand for cement and relieving the local economy of the burden of dependency on imports especially under the current circumstances. 

Sri Lanka’s tourism promotion campaigns are to be implemented with the assistance of the private sector tourism entities, official sources said.  

Cinnamon Hotels and Resorts launched a unique ‘One Island, A Thousand Treasures’ initiative to let the world rediscover Sri Lanka as a must visit authentic destination on Tuesday 22..

The novel destination promotion campaign in partnership with Sri Lanka Tourism and SriLankan Airlines among others will unveil the unknown stories behind Sri Lanka and paint a unique picture of culturally relevant stories just waiting to be explored by the world.

Cinnamon Hotels and Resorts Marketing Vice President Dileep Mudadeniya said the aim of the initiative is to play a proactive role to entice global travellers to experience Sri Lanka by showcasing the nation’s unique places, people and experiences beyond the usual sites and excursions. 

These stories will be promoted via digital platforms to engage an international audience through social media and programmatic digital marketing, to encourage travellers to visit and experience Sri Lanka.

He said that a panel of judges will consider all submissions via video or pictures for three months after which Cinnamon will substantiate same and amplify selected ones to the global stage via network of global travel influencers, website of Cinnamon as well as Sri Lanka tourism thereby using those ideas to woo travellers to the country.  

He said selected submissions will qualify to enjoy complimentary stay at resorts, travel overseas via SriLankan Airlines or win vouchers from Keells Super. “We hope to use the selected submissions as Sri Lanka’s emotional selling proposition to global travellers,” Mudadeniya added.

Cinnamon said the ‘One Island, A Thousand Treasures’ initiative targets the creation of new business opportunities for local communities including the revival of local arts and crafts.

 By promoting the niche, lesser-known experiences, and history of Sri Lanka, not only will the country have more to offer tourists, but it will also help more industry stakeholders – a key objective of the campaign.

Tourism Ministry Secretary S. Hettiarachchi welcomed the Cinnamon initiative saying it will help Sri Lanka’s quest to draw 7 million tourists and achieve $ 10 billion foreign exchange from tourism by 2030. 

He urged other private sector stakeholders to come up with similar innovative initiatives for which the Government will extend support.  


Creative partner Dentsu Grant Agency Managing Director Neela Marikkar said it is the agency’s project of passion and enables the stakeholders to tell a different story never heard before about Sri Lanka as generation Z and millennial travellers seek authentic experience, deeper connection and engagement with communities. 

In that context, Marikkar emphasised: “Sri Lanka has so much to offer” and the Cinnamon initiative ushers in an exciting journey of discovery. “We hope the initiative will enable local communities to take price and ownership of authentic experiences, lure more travellers thereby benefit from the influx,” she added.

Digital content creators can record their discovery and share it with the Cinnamon Hotels & Resorts Team via the One Island, A Thousand Treasures website or through Facebook, Instagram or YouTube tagging @CinnamonHotels and #OneIslandThousandTreasures. 

Upon submission of an authentic Sri Lankan story of a unique place, people or culture, an independent panel of content experts will review each entry.