Business

Tourism stakeholders voice concern over non-implementation of debt moratorium extension

Published

4 years ago

2022/07/1

By Hrian H.Senewiratne

The Cabinet approved a six- month moratorium extension for the tourism sector 21 days ago but it’s yet to be implemented, president, Tourist Hotels Association

M. Shanthikumar said.

“The entire tourism industry is on the verge of collapse and accommodation providers and other service providers are on the brink of closure or have already closed. The debt moratorium which was given by banks will end this month and the moratorium needs to be extended amid the current crisis, Shanthikumar told the media at a press conference at Hotel Ramada on Monday.

While thanking Minister Harin Fernando for getting swift Cabinet approval for the moratorium extension, Shanthikumar expressed surprise at the almost one- month delay in implementing it by the Central Bank and another committee appointed to oversee it.

“The US dollar loans that were taken by tourism stakeholders to develop their respective properties add up to around Rs. 500 million (with interest) to banks and the industry is asking for a six -month debt moratorium extension for this. This will also not have a major negative impact on the banking industry as our industry’s total borrowings are only around 5 per cent of the total lendings of banks, Asoka Hettigoda, another major figure in the tourism industry told the press conference.

“If the industry is not offered this moratorium and they are unable to meet their debt obligations it will have a negative impact on the entire banking sector and its non- performing loan ratio which in turn will reflect badly on the banks, he said.

Hettigoda added: “The tourism sector has also been a very faithful paymaster and when the industry recovers the loans due to the banks can and would be settled.

Another stalwart in the industry, Anura Lokuhetty, said that already some hotels, specially in the SME sector, are closing down and if the moratorium is not extended for another six months there will be a total job loss of around 40 per cent, which is around 200,000 jobs; a very alarming scenario for the economy. “It must be said that if this happens, calculating also dependents of tourism industry personnel, the loss of livelihoods would be around one million.”

“We are confident that the industry is on the recovery path and the industry is confident that it can net in tourism forex in excess of USD 1 billion from the remaining six months. Sri Lanka is heading for the winter season and we see a very positive trend in our forward bookings despite the current economic and political issues in Sri Lanka. We saw this positive vibe even during the LTTE separatist war, another Industry giant Hiran Cooray said.

Cooray said that in the first five months of the year the tourism industry earned more than US $ 400 million and the coming six month would be crucial for the industry with the upcoming winter season. “If the government considers the debt moratorium for the next six months the industry could bring more than US $ one billion in foreign reserves into the country, he said.

Cooray said due to the Russian war, travel to the EU is restricted and the industry expects the Russian and the Chinese markets to also reopen soon, allowing the tourism industry to go beyond the USD 1 billion revenue mark for the next six months.

Meanwhile, Nilmin Nanayakkara, who is also a tourism industry live-wire said that they are asking for the moratorium because tourist arrivals have dropped due to the May 9 incident and political mismanagement. “The industry did not create this negative sentiment and we are not responsible for this and this accounts for the request by the industry for a moratorium, he said.

“We have to save this industry from drowning. Since the Easter Sunday bomb blast followed by the pandemic, the sector survived purely due to the moratorium extended by the government and the relief package given for its survival. Hotels that employ over 70 per cent of the workforce were able to sustain the staff and cover the basic costs due to these relief measures, he added.

Members of THASL and SLAITO alone invest over Rs. 2 billion annually to promote Sri Lanka in overseas markets. This is over and above the contribution of 1 per cent of the turnover from the industry to SLTDA in the form of TDL to develop and promote tourism. In 2018, this was an additional Rs 1.5 billion.

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Business

SLT-MOBITEL driving Sri Lanka’s economic resilience through digital infrastructure

Published

18 hours ago

2026/09/10

Sahan Weerasooriya

SLT-MOBITEL marks its triple triumph at the National Business Excellence Awards 2026

Corporate accolades underscore the alignment between its operational excellence and national development

In an era where national competitiveness is intrinsically tied to digital connectivity, strengthening the country’s digital backbone has become an urgent priority. Within this context, the evolving role of Sri Lanka’s leading telecommunications provider, SLT-MOBITEL, offers valuable insight into how technological infrastructure can underpin broader economic resilience.

Telecommunications and digital networks are foundational to economic transformation. By expanding high-speed broadband access, upgrading enterprise cloud capabilities, and bridging the urban-rural connectivity divide, SLT-MOBITEL helps reduce business transaction costs, streamline supply chains, and enable micro, small, and medium enterprises to reach global markets.

Recent corporate accolades further underscore this alignment between operational excellence and national development. SLT-MOBITEL’s triple triumph at the National Business Excellence Awards 2026 – winning in the Infrastructure and Utilities sector, Performance Management, and ICT Services categories – highlights its growing impact. Notably, the recognition of eChannelling’s contributions to digital healthcare reflects a broader strategic pivot toward integrated technology solutions.

“Institutional efficiency of this nature is critical for attracting foreign direct investment, as global partners increasingly assess a country’s digital maturity and systemic stability before committing capital,” noted industry observers.

Moreover, the company’s transition from a conventional telecom utility to a comprehensive digital solutions provider aligns seamlessly with Sri Lanka’s national digitalisation agenda. As the country pursues public sector modernisation, enhanced e-governance, and a competitive knowledge economy, the private sector must step up to deliver secure, scalable, and future-ready networks. Investments in data centres, cybersecurity frameworks, and advanced ICT infrastructure act as strategic buffers, ensuring that Sri Lanka’s economic apparatus remains agile and resilient amid future global uncertainties.

However, industry experts caution that while these achievements are commendable, SLT-MOBITEL still has a considerable distance to cover in fully enabling a truly digital economy.

Business

Port City Colombo strengthens Gulf investment ties at Dubai diplomatic engagement

Published

18 hours ago

2026/09/10

Sahan Weerasooriya

The panel discussion at the engagement

Port City Colombo (PCC) took a prominent role as Platinum Sponsor at the second edition of Sri Lanka Beyond Your Dreams, a high-level diplomatic and investment engagement hosted by the Consulate General of Sri Lanka in Dubai and the Northern Emirates. The event, held on 2nd September 2026 at the Hilton Dubai Al Habtoor City, brought together over 400 senior UAE-based business leaders, investors, diplomats, and institutional stakeholders, alongside Sri Lanka’s most senior government representatives.

The gathering was graced by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, as Guest of Honour, and Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism. A high-level Sri Lankan delegation – including the Secretary to the Prime Minister, the Chairman of the Board of Investment, the Chairman of the Export Development Board, and the Director General of Commerce – underscored the government’s strong commitment to deepening economic diplomacy with the UAE.

In his keynote address, Minister Herath reaffirmed the centuries-old ties between Sri Lanka and the Arab region, emphasising the UAE’s vital role as a key economic partner. He stressed the urgency of finalising a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which would establish a robust framework to elevate trade, investment, and bilateral cooperation. Declaring Sri Lanka “open and ready for business,” he positioned Port City Colombo as the physical embodiment of this economic mission – a modern Special Economic Zone (SEZ) with a dedicated legal framework and competitive incentives, offering UAE investors a natural gateway to South Asia while maintaining strong Gulf connectivity.

Business

American Premium Water strikes Gold at Dragons of Sri Lanka 2026

Published

19 hours ago

2026/09/10

Sahan Weerasooriya

The achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories.

American Premium Water has secured four wins at Dragons of Sri Lanka Awards 2026, including three Gold Dragons and one Black Dragon, marking a significant milestone for the brand following its relaunch last year.

Part of the prestigious Dragons of Asia awards, Dragons of Sri Lanka brings the program’s regional platform to the local market, celebrating creative and effective marketing communications, with entries evaluated on strategic thinking, creativity, execution and impact. Established in 2000, Dragons of Asia is one of Asia’s premier results-driven marketing awards programs.

For American Premium Water, the achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories. In the distinction of Gold Dragons, American Premium Water was recognized across three categories including Product Launch or Re Launch, Cause, Environment or Sustainability and Creative Excellence while the Black Dragon was awarded in recognition of Small Budget.

Competing alongside leading brands and agencies in Sri Lanka, American Premium Water’s four wins demonstrate the strength and effectiveness of its recent work. Winning three Gold Dragons across three distinct categories highlights the breadth of the brand’s achievements, while the Black Dragon for Small Budget further emphasizes its ability to create meaningful impact through focused and efficient investment.