By: Staff Writer

April 03, Colombo (LNW): Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando yesterday confirmed that the Minimum Room Rate (MRR) effective since 1 October last year, has made a positive impact to the overall wellbeing and growth of the tourism sector.

“The progress of the MRR has been very good not just for the Colombo City Hotels but also establishments outside the capital in increasing room rates during the season. It has had a positive impact overall on the industry yields,” he told the Daily FT.

Highlighting the importance of market conditions and industry standards in determining the future implementation of the MRR, Fernando stressed the importance of reaching a mutual understanding and agreement among all stakeholders regarding the regime’s implementation.

Responding to industry concerns about the impact of forward bookings on the MRR, Fernando explained that all walk-in and free independent travellers (FIT) were required to comply with the rates set by Colombo City Hotels.

This policy in turn, allowed other establishments outside Colombo to adjust their rates, benefiting the entire industry and the economy,” he added.

Fernando also shed light on the significant contribution of Indian travellers to tourism sector, particularly in terms of spending and their preferences for gaming.

“An Indian traveller spends 4.6 nights on an average. However, the bulk of the Indians tourists coming to Sri Lanka are for gambling purposes, where most of them are staying in plush hotels.

Despite no records, it is evident that the indirect income generated via tourism is quite high. Thus, the MRR in Colombo City Hotels is a just a miniscule amount to the Indian travellers coming to enjoy casinos,” he said.

Fernando said that the authority will undergo a thorough review of the MRR in collaboration with industry stakeholders this week.

The reintroduction of the MRR regime for six months from 1 October 2023, particularly for struggling city hotels, was to come to an end on 31 March.

The SLTDA Chief suggested that reaching a consensus among industry stakeholders could mitigate the need for regulatory intervention, ultimately benefiting all parties involved.

Fernando asserted the importance of addressing market demands and enhancing the overall visitor experience to ensure sustained growth and success in Sri Lanka’s tourism sector.

Several tourism associations, yesterday, rebuked calls by what they alleged as “a cartel of lazy hoteliers” to continue with Government regulated Minimum Room Rates (MRR), stating that Sri Lanka lost close to 40% of additional occupancy due its implementation, and a decision to continue could lead to the breakdown of the industry.

By: Staff Writer

April 03, Colombo (LNW): The government has decided to import a total of 1,000 buses and vans to improve the transportation facilities provided to tourists.

Accordingly, in a bid to boost the tourism sector, the Cabinet of Ministers granted approval to a proposal presented by the Minister of Tourism and Lands to import 750 vans and 250 buses.

As per the proposal, 6-15 seater vans, as well as 16-30 seater (small) buses and 30-45 seater (large) buses are planned to be imported, without any special tax relief.

The government says that, although it is considered a custom in the tourist industry that vehicles engaged in the industry for tourist transportation should not be used for more than 6 years, it is apparent that the condition of the vehicles used in the industry is not satisfactory and sufficient.

In a statement, it added that the fame earned by Sri Lanka as a prominent tourist destination is tarnished due to the usage of age-old vehicles as a result of the limitation of vehicles and essential spare parts.

Therefore, the requirement of importing vehicles essential for enhancing the industry has been recognized by the government, considering the contribution to the tourist industry within the economic revival process of Sri Lanka.

The Government of Sri Lanka’s consideration of lifting the restrictions on vehicle imports without a control mechanism could lead to a mass outflow of the gradually improving foreign reserves, warns industry experts.

Leading Motor trader noted that stakeholders in the industry have already proposed a mechanism with a duty that comes over 1 ½-2 years, but the Government has not announced any sort of mechanism along with the lift on vehicle import restrictions.

He also stressed that the removal of restrictions on buses and commercial vehicles can have detrimental consequences as the Government is to extend the import of buses that are 10 years old.

He said: “They (the Government) has to consider the environment when bringing buses which are 10 years old and have a mileage of 1 million kilometres.”

The industry expert reiterated that the safety of passengers is at stake in importing such vehicles merely to save money, which would cost the Government further along with maintaining old vehicles.

He further added that the industry that specialises in busses and commercial vehicles will benefit but that the Government should consider the aspect of the two-wheelers, as well, to kick-start small businesses.

By: Staff Writer

April 03, Colombo (LNW): The World Bank yesterday said Sri Lanka’s economy is projected to see moderate growth of 2.2% in 2024, showing signs of stabilisation, following the severe economic downturn but the country still faces elevated poverty levels, income inequality, and labour market concerns.

The fresh assessment of the multilateral donor agency is contained in its latest bi-annual update.

Released yesterday the Sri Lanka Development Update, Bridge to Recovery, highlights that Sri Lanka saw declining inflation, higher revenues on the back of the implementation of new fiscal policies, and a current account surplus for the first time in nearly five decades, buoyed by increased remittances and a rebound in tourism.

However, poverty rates continued to rise for the fourth year in a row, with an estimated 25.9% of Sri Lankans living below the poverty line in 2023.

Labour force participation has also seen a decline, particularly among women and in urban areas, exacerbated by the closure of micro, small, and medium-sized enterprises (MSMEs).

“Households are grappling with multiple pressures from high prices, income losses, and under employment. This has led to households taking on debt to meet food requirements and maintain spending on health and education,” according to the report.

“Sri Lanka’s economy is on the road to recovery, but sustained efforts to mitigate the impact of the economic crisis on the poor and vulnerable are critical, alongside a continuation of the path of robust and credible structural reforms,” emphasised World Bank Country Director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos.

“This involves a two-pronged strategy: first, to maintain reforms that contribute to macroeconomic stability and second, to accelerate reforms to stimulate private investment and capital inflows, which are crucial for economic growth and poverty reduction.”

Looking forward, the report projects a modest pickup in growth of 2.5% in 2025, with a gradual increase in inflation and a small current account surplus.

However, high debt service obligations are expected to exert pressure on fiscal balances. Poverty rates are anticipated to remain above 22% until 2026.

Risks to the outlook remain, particularly related to inadequate debt restructuring, reversal of reforms, financial sector vulnerabilities, and the enduring impact of the crisis.

The report emphasises that strong reform implementation will be fundamental to fostering a resilient economy through continued macro-fiscal-financial stability, greater private sector investment, and addressing risks associated with state-owned enterprises.

By: Staff Writer

April 03, Colombo (LNW): Sri Lanka Bank business revival units set up during the Covid -19 pandemic period will be strengthened to operate independently under current normal circumstances to help Small medium and corporate enterprises that have bad loans to continue their operations, Central Bank Governor Governor Nandalal Weerasinghe said

The Central Bank of Sri Lanka issued broad guidelines to licensed banks on 28 March 2024, to further strengthen the functions of already established Post COVID-19 Revival Units and reformulate suchunits as Business Revival Units (BRUs).

The enhanced scope of proposed BRUs will facilitate sustainable revival of viable businesses affected by the extraordinary macroeconomic conditions and ensure the proper handling of the increased impaired assets of licensed banks.

The Central Bank sought relevant stakeholder views including the banking industry and the Chamber of Commerce, when formulating these guidelines.

The challenging macroeconomic conditions prevailed during the recent years have led to disrupting the income generating activities of businesses, adversely impacting the ability of borrowers to duly repay their loans and thereby impairing the recovery process of licensed banks.

Thus, the setting up of BRUs is considered imperative to assist both performing and non-performing borrowers of licensed banks whose businesses are fundamentally viable to revive.

Licensed banks are required to have robust business revival and rehabilitation policies and procedures to support revival of businesses, Central Bank guidelines indicated. .

Large banks with more than 50 branches, may consider establishing BRUs at large branches/regional offices of banks, in order to support revival of businesses of affected borrowers more effectively and efficiently.

Fundamental viability of a business is a key factor for the consideration of business revival by a licensed bank. In the viability assessment, both financial and non-financial indicators are taken into consideration.

Borrower’s continuous cooperation will be critical for the process of reviving a stressed business. The business can be revived through both financial and operational restructuring tools and processes.

The selection of an appropriate set of revival tools is subject to a mutual agreement of parties involved in the revival process.

Corporate borrowers who have outstanding credit facilities at multiple banks may agree on a “Corporate Workout Framework” on a voluntary and mutually agreeable basis, without the court intervention, to address financial and/ or business distress faced by them.

For this purpose, a “Corporate” is defined as a business with an annual turnover above Rs. 1 bn, as per the audited financial statements, or cumulative outstanding credit facilities granted by licensed banks are equal to or more than Rs. 250 mn.

Licensed banks are required to establish BRUs by mid-May 2024, and be fully compliant with the requirements of the Circular by 01 July 2024.

April 03, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, Southern and Uva provinces after 2.00 p.m.

On April 3rd, the Sri Lankan Rupee remained stable against the US Dollar across various commercial banks in Sri Lanka, continuing its trend from Tuesday and staying below the Rs. 300 threshold.

According to Seylan Bank, the buying rate for the US Dollar stands at Rs. 293.75, with a selling rate of Rs. 303.25.

At NDB Bank, both the buying and selling rates for the US Dollar remain unchanged at Rs. 293 and Rs. 304, respectively.

Peoples Bank reported a slight reduction in the buying rate of the US Dollar, from Rs. 294.54 to Rs. 294.44, and a similar decrease in the selling rate from Rs. 304.51 to Rs. 304.41.

Meanwhile, at Commercial Bank, while the buying rate of the US Dollar decreased marginally from Rs. 293.72 to Rs. 293.55, the selling rate saw a slight increase from Rs. 303 to Rs. 303.25.

Sampath Bank recorded no changes in the buying and selling rates of the US Dollar, which remain at Rs. 295 and Rs. 304, respectively.

April 03, Colombo (LNW) Chairman of the Sri Lanka Tourism Development Authority, Priyantha Fernando, announced the extension of visa-free entry for tourists from seven countries by a month, extending the scheme until April 30th.

The visa-free entry initiative, which allows tourists from India, Russia, China, Indonesia, Thailand, Japan, and Malaysia to enter Sri Lanka without a visa, was originally implemented to encourage tourism.

Fernando attributed the decision to the rising number of tourist arrivals, indicating a positive response to the initiative. This extension reflects the government’s commitment to boosting tourism and enhancing the visitor experience in Sri Lanka.

April 03, Colombo (LNW): Under the guidance of President Ranil Wickremesinghe, a formal discussion addressing the educational hurdles encountered by Muslim schools in the Colombo region was convened at the Presidential Secretariat on Tuesday.

The meeting, coordinated by the President’s Media Division, highlighted critical issues such as teacher shortages, insufficient infrastructure, challenges in teaching Islam in Sinhala, and the absence of schools in Muslim-majority areas.

Minister Ali Sabry and representatives of school principals and organizations briefed President Wickremesinghe on the specific challenges faced by Muslim schools in Colombo, prompting immediate action from the President. He directed officials from the Ministry of Education and the Urban Development Authority to investigate and report on the identified issues.

With approximately 40,000 students receiving education in the Sinhala medium, attention was drawn to the scarcity of teachers proficient in teaching Islam in Sinhala. Minister Sabry underscored the disparity between the number of Muslim schools in Colombo (around 19) compared to Kalutara (approximately 70), leading to higher dropout rates and associated social issues. President Wickremesinghe instructed the Ministry of Education to propose solutions to address this disparity.

Furthermore, the lack of Muslim schools in certain areas of Colombo was highlighted, hindering students’ access to education. President Wickremesinghe tasked Urban Development Authority officials with exploring options for relocating schools to suitable locations.

Efforts to address space shortages and facilitate donor-funded construction of new school buildings were also discussed, along with the imperative need to recruit approximately 200 additional teachers for Muslim schools in Colombo.

The President proposed initiating agriculture-related training programs for Advanced Level-passed students and announced plans to reconvene at the end of the month for further review of the challenges faced by Muslim schools.

The significant meeting was attended by key stakeholders including Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka, Governor of the Western Province Air Marshall Roshan Gunathilaka, Secretary to the President Saman Ekanayake, Secretary to the Ministry of Education Thilaka Jayasundara, provincial education officials, representatives from the Ministry of Urban Development and Housing, school principals, members of school development committees, representatives of Muslim organizations, and educators.

1. A discussion on the educational challenges confronting Muslim schools in the Colombo region was convened under the leadership of President Ranil Wickremesinghe at the Presidential Secretariat. Key issues addressed included the shortage of teachers, inadequate space and classrooms, difficulties in teaching Islam in Sinhala, absence of schools in Muslim-majority areas.
2. The National Peoples Power (NPP) has challenged Opposition Leader MP Sajith Premadasa for a public debate, stating that it accepts the various calls for a debate proposed by Samagi Jana Balawegaya (SJB) members. Addressing the media, NPP member Sunil Handunnetti said party Leader MP Anura Kumara Dissanayake was ready for a public debate with MP Premadasa.
3. The Colombo High Court rejected the bail application filed by the General Secretary of Bodu Bala Sena (BBS) General Secretary Ven. Galagodaaththe Gnanasara Thero, who was recently handed a 4-year rigorous imprisonment.
4. Member of Parliament Gamini Lokuge has been unanimously elected as the new Chairman of the Committee on Banking and Financial Services for the Fifth Session of the Ninth Parliament.
5. The government has decided to import a total of 1,000 buses and vans to improve the transportation facilities provided to tourists. Accordingly, in a bid to boost the tourism sector, the Cabinet of Ministers granted approval to a proposal presented by the Minister of Tourism and Lands to import 750 vans and 250 buses.
6. Mr. W. K. D. Wijerathne has been appointed as the Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), the President’s Media Division (PMD) said.
7. Chairman of the NMRA Dr. Ananda Wijewickrama says he requested support from the WHO to improve the condition of the laboratories. Accepting the request, a pharmacist and a doctor attached to the World Health Organization have arrived in Sri Lanka. Dr. Ananda Wijewickrama says they are currently conducting investigations.
8. The Colombo Commercial High Court yesterday issued an Enjoining Order restraining popular singer Senaka Batagoda from singing seven popular songs including “Api Kavuruda” and “Api Senasille”. The order was issued by Colombo Commercial High Court Judge Priyantha Fernando after considering a complaint filed under the Intellectual Property Act by musician Janath Kulathilake who was the combined lyrics, melody and music compositor of those seven songs sung by Senaka Batagoda.
9. The government has decided to provide free-of-charge sanitary napkins to schoolgirls starting this month. Thereby, as many as 800,000 schoolgirls from rural schools, remote schools, estate schools, and urban schools with poverty-stricken students, will thus be provided with sanitary napkins free of charge.
10. The ongoing trade union action launched by the health sector workers has been called off. The trade unions affiliated with the Health Trade Union Alliance were planning to resort to an indefinite strike today (03) after the discussion that was originally scheduled to be held on Monday with the ministerial authorities was deferred

April 03, Colombo (LNW): Agriculture and Plantation Industries Minister Mahinda Amaraweera rebuked certain political factions claiming to represent farmers, accusing them of attempting to dissuade farmers from paddy cultivation. Speaking at a ceremony held at the Lunama Agrarian Service Centre on Monday, the Minister asserted that despite their efforts, not a single farmer has been deterred from cultivating paddy.

The event marked the collection of rice in the Hambantota district as part of the district-level rice collection program for the 57th New Rice Festival 2024, to be held in honor of Anuradhapura’s Jaya Sri Maha Bodhi on April 6.

Minister Amaraweera highlighted a significant milestone for Sri Lanka’s agriculture: achieving self-sufficiency in rice production. He noted that in 2022, the government had to import eight lakhs metric tonnes of rice, costing US$300 million. However, by 2023, the nation successfully produced the entire required amount domestically, ensuring that citizens consumed locally cultivated rice throughout the year. He reiterated that this year too, there is an abundant supply of rice, obviating the need for imports.

Attributing this achievement to government initiatives, including the reinstatement of chemical fertilizers and the return of protesting farmers to their fields in 2021, the Minister praised the nation’s farming community for their resilience and dedication. He emphasized the importance of recognizing and appreciating their contributions.

The upcoming New Rice Festival, scheduled for the 6th of the month in the presence of Anuradhapura’s Jaya Sri Maha Bodhi, holds symbolic significance. Minister Amaraweera expressed hopes that this auspicious event would augur well for the Yala Season planting activities and the overall crop yield, ensuring self-sufficiency in paddy production for the year’s Maha Season and beyond.