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Covid-hit hotel industry seeks urgent support from government

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THASL Chief says support needed to prevent widespread devastation

Hotel industry alone employs approximately 250,000 staff

Seeks loan interest waiver for Rs. 350 bn debt till business rebounds to pre-pandemic level

Says banks are very understanding but they are reluctant to take a haircut

‘If govt reduces bank taxes by 2-3%, banks would be happy to accommodate our request’

‘There’s a lot of international donor funding available for hospitality industry’

‘None of the hotels have defaulted on any loans before’

‘Industry looks forward to 2021 with determination’

 

BY HARISCHANDRA GUNARATNA

As the hotel industry is forced to live with zero revenues with international travel becoming a long forgotten phenomenon in this Covid world, The Island Financial Review recently spoke with Sanath Ukwatte, President of The Hotels Association of Sri Lanka (THASL) to find out how the whole thing is weighing on his mind.

 

Following are excerpts from the interview we had with him.

 

“THASL is recognised for the incredible work it has done to support tourism in Sri Lanka. No other association or industry body of any industry has done so much under so much pressure. The fact that THASL has managed to obtain almost everything we have asked from the government to support the industry is remarkable. No other industry body has managed that”.

“At the moment the entire tourism industry has collectively taken loans amounting to Rs. 350 billion. 80% is from hotels big and small. It’s not as big compared to the assets. Total hotel assets are worth around $10b at present valuations. This fact was mentioned by Prime Minister Mahinda Rajapaksa during the Budget speech recently. None of the hotels have defaulted on any loans before. Moratorium is only a temporary solution as interest is accumulating during the moratorium period”.

“Since Easter attacks hotel debt is on moratorium. Pandemic came from no where. And again we are on moratorium. That’s why we are requesting the government for an interest waiver for 2 years or until international travel is restored and industry gets back to normal”.

“Banks are very understanding but they are reluctant to take a haircut. If the government reduces their taxes by 2-3% they would be happy to accommodate our request or else the government will have find another mechanism. There’s a lot of international donor funding available for hospitality industry as this is a global problem. 1 in 10 workers is employed by the travel industry, whether it be hotels, airlines, cruise lines, travel agents, theme parks, restaurants, retail etc”.

“As the worst affected industry due to COVID-19, governments world over have announced targeted relief for the hotel sector. Naturally THASL seeks government assistance to grant short-term and medium-term relief for the industry until the business bounces back”.

“We must also remember that our sector was completely crippled by the Easter Sunday attacks and as we were just about recovering from January this year onwards, industry came to a grinding halt in March as a result of this pandemic. Both these unfortunate events were out of our control. Now we are in a serious situation. Our priority is to maintain the livelihoods of 500,000 direct and indirect employees. Hotel industry alone employs approximately 250,000 staff who have undergone years of training. It’s a pity to lose staff who are committed and have made a career in the industry. In total there are 2 million dependents on tourism industry both indirectly and directly.

“In 2018, in addition to the salary, average service charge of a hotel employee was Rs: 25,000 per month. Now all that is lost. Hotels are struggling to pay monthly salaries to their permanent employees as company reserves has now depleted. Already nearly 20,000 have lost jobs. They were mainly trainees or who have worked for less than one year. Even the restrictions between inter provincial travel and 50 people limit for weddings and events have badly impacted on local business”.

“New Year’s Eve which is an important day for all hotels in the country in terms of revenue is all subdued now due to government’s call to restrict gatherings. The businesses are in danger. Cash flow has become a serious issue for hotels and jobs are at risk. That’s why we seek government support to restructure hotel debt with a two year interest waiver and a long term settlement plan for capital repayment”.

“Currently total hotel debt stands around Rs 350 billion. We have also requested the government to grant us the wage support scheme for the most vulnerable employees for which the Cabinet has already given the go-ahead. As a result of the 2nd wave of the virus UNWTO has revised the prospect for the international tourist travel for 2021 to a negative growth. Although we welcome the government’s decision to re-open the airport for tourists from January – a step in the right direction – it will take a minimum two years for the industry to rebound. Small and medium sized enterprises consist about 70% of the tourism industry. That’s why we call for financial and political support to enable critical recovery measures as speedily as possible.”



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AAC looks towards a future of vertical mobility in Sri Lanka

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Drones could be facilitators of vertical mobility.

The Automobile Association of Ceylon (AAC) is looking beyond the traditional boundaries of mobility and road safety toward the future of mobility through sustainable developments in vertical mobility applications under the global guidance of the Fédération Internationale de l’Automobile (FIA).

AAC President Mr. Dhammika Attygalle believes AAC has the potential to contribute sustainable and proven systems, regulatory understanding, and international mobility frameworks toward developing Sri Lanka’s future mobility landscape while supporting the country’s broader economic development.

Representing Sri Lanka at the recent FIA Regional Drone and Vertical Mobility initiative held in Nepal was AAC Executive Committee Board Member Indula Sumithraarachchi, who participated alongside regional delegates and international mobility experts discussing the applications of vertical mobility systems and evolving regulatory frameworks covering mobility integration, safety, aviation and legal regulations.

“As mobility technologies evolve globally, we see vertical mobility as a natural extension of future mobility ecosystems. We believe vertical mobility is connected to sustainable areas not limited to future urban mobility, transport and logistics, infrastructure integration, safety frameworks, disaster and emergency response, and environmental efficiency,” he stated.

Drones are already being commercially utilized in Sri Lanka for dronegraphy (photography and videography using drones), agriculture, surveying and mapping, events, and marketing. However, it is important that greater attention is given toward safety standards, operational protocols, and aviation regulations, licensing, approvals and career professionalism as drone pilots within Sri Lanka in order to make these technologies safer and more accessible to the public.

International mobility experts increasingly recognize drones as part of a wider vertical mobility ecosystem operating alongside aviation and respective local regulatory frameworks. Experts explain that drone systems are helping countries establish regulatory structures, safety standards, technical expertise, aerial management systems, and operational frameworks that may eventually support broader future mobility technologies.

For AAC, the relationship between drones and vertical mobility represents a wider future mobility framework involving how people, services, safety, infrastructure, information, and transport systems may operate in more connected, intelligent, and efficient ways beyond conventional road-based transportation.

For decades, AAC has played an important role in Sri Lanka’s mobility sector through road safety advocacy, motoring assistance, tourism support services, driver awareness initiatives, and public mobility education. The association has continuously contributed toward improving safe mobility practices for Sri Lankan road users and motorists.

AAC now aims to position Sri Lanka within these evolving international mobility conversations while ensuring that future mobility development remains safe, responsible, and aligned with international standards.

The association also believes collaboration between regulators, aviation authorities, educational institutions, private sector innovators, and international mobility organizations will become increasingly important as future mobility ecosystems continue to develop globally.

Through FIA-supported international engagement and regional collaboration, AAC hopes to contribute toward building awareness and understanding of future mobility opportunities while ensuring Sri Lanka remains connected to emerging global transportation developments.

As mobility increasingly moves toward smarter, interconnected, and technology-driven systems worldwide, AAC’s initiatives into vertical mobility reflect its broader vision of supporting safe, progressive, and future-ready mobility solutions for Sri Lanka and future generations.

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Vietjet Air announces Colombo – Ho Chi Minh City route

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Vietjet announces its Ho Chi Minh City – Colombo direct route, in the presence of General Secretary and President of Vietnam To Lam (center) and Prime Minister of Sri Lanka Harini Amarasuriya (second from right)

Vietjet Air, Vietnamese new-age hybrid airline, has announced its first direct service connecting Colombo to Ho Chi Minh City at the Sri Lanka – Vietnam Trade, Investment and Tourism Cooperation Forum. The announcement took place in the presence of General Secretary and President of Vietnam To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, and senior officials from both countries.

This is the airline’s first direct service between Sri Lanka and Vietnam, supporting the airline’s international expansion while contributing to stronger economic, trade, tourism, and people-to-people ties between the two nations.

The Colombo – Ho Chi Minh City route is expected to commence in August 2026 with four round-trip flights per week. Travelers from Colombo will soon enjoy affordable fares and seamless connectivity to Vietnam’s leading tourism and business hubs, along with convenient access through Vietjet’s extensive international flight network to major destinations across the Asia-Pacific region, including Australia, Japan, South Korea, China, and beyond.

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SDB bank and Hayleys Mobility forge strategic partnership to advance sustainable mobility and private vehicle leasing

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Tharanga De Silva - Chief Manager, Business Banking – SDB bank, Lahiru Ekanayake - Senior Manager - Leasing SDB bank, Chitral De Silva - Chief Business Officer- SDB bank, Manoj Akmeemana - Deputy Chief Executive Officer- SDB bank, Kapila Ariyaratne - Executive Director/Chief Executive Officer- SDB bank, Hasith Prematillake- Managing Director- Hayleys Mobility Limited, Roshani Dharmaratne - Executive Director - Hayleys Mobility Limited, Suraj Chularathne- Assistant General Manager- Hayleys Mobility Limited, Panduka Rathnayake - General Manager Finance - Hayleys Mobility Limited, Anjana Jayarathne - Asst. Manager Channel Development - Hayleys Mobility Limited

SDB bank has entered into a strategic partnership with Hayleys Mobility Limited through the signing of a Memorandum of Understanding, reinforcing the bank’s commitment to expanding access to structured mobility financing while advancing its broader sustainability banking agenda. The collaboration brings together two established institutions to support customers seeking leasing solutions for private vehicles, with a notable emphasis on electric vehicles as part of a more future-focused approach to transportation.

The MoU was signed recently at the Hayleys Mobility office in Union Place, in the presence of senior representatives from both organizations. Representing SDB bank Kapila Ariyaratne, Executive Director and Chief Executive Officer, Manoj Akmeemana, Deputy Chief Executive Officer, Chitral De Silva, Chief Business Officer, Lahiru Ekanayake, Head of Leasing and Tharanga De Silva Chief Manager, Business Banking were participated. Hayleys Mobility Limited was represented by Managing Director Hasith Prematillake, Director Roshani Dharmaratne, Mr. Panduka Rathnayake – General Manager Finance, and Mr. Suraj Chularathne – Assistant General Manager.

The partnership is designed to expand access to private and sustainable leasing solutions across Sri Lanka, while also responding to growing interest in cleaner and more responsible mobility choices. By placing special focus on electric vehicle leasing, the initiative reflects SDB bank’s recognition of changing customer preferences and the importance of supporting more sustainable transport options through accessible financing.

In addition to supporting conventional private vehicle financing, the collaboration enables customers to benefit from a more integrated experience that brings together vehicle selection and financing under a single proposition. Through the combined reach of SDB bank and Hayleys Mobility, the partnership is expected to improve accessibility and convenience for customers across the country, including professionals, self-employed individuals, business owners and other private vehicle buyers looking for reliable, structured leasing solutions.

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