Business
Sri Lanka ‘keeping an open mind’ on an IMF bailout
Cabinet Spokesman and Plantation Minister Dr. Ramesh Pathirana said yesterday that Sri Lanka was keeping an open mind about dealing with the IMF and would not ruled out assistance from the global lender to bailout Sri Lanka from the current economic and foreign currency reserves crisis.
While expressing hopes for an economic turnover in the coming months, Dr. Ramesh Pathirana said that the government was assessing the situation with an open mind. “We are in touch with the World Bank, the Asian Development Bank (ADB) and other global financial agencies. The government has not taken a decision not to deal with the IMF. It was under Mahinda Rajapaksa presidency that Sri Lanka obtained the highest amount of foreign loans from the IMF,” he recollected.
“Foreign remittances and tourist arrivals have recorded a steady increase in the last few months. The benefits accrued from vehicle and other nonessential imports were negated as a result of the sharp escalation of oil process in the international market and the three waves of the pandemic,” he said addressing the media.
“Sri Lanka’s import bill exceeds its export income drastically creating a huge trade gap. For instance, Sri Lanka imported goods in excess of US$ 4.1 billion in 2021 more than the value of its exports. Until we take steps to contain the trade deficit, Sri Lanka cannot come out of this economic crisis,” he observed.
Sri Lanka is facing debt repayment obligations of about $4 billion this year. In this context, politicians in the Opposition and economists are urging the government to seek assistance from the IMF.
Some opposition members have also urged the government to table in parliament an anticipated IMF assessment of the economic and financial situation, conducted as part of its regular consultations with Sri Lanka.
“It is essential that the government table this document before parliament and clearly state their plan for addressing this crisis in a sustainable manner,” members of the Opposition said.
With fuel stocks sufficient to last only for a few days, Pathirana said the Central Bank has been directed to release funds for fuel shipments.
Fuel shortage is also hitting power supply in the country with the power regulator (PUCSL) warning hours of rolling power cuts described as load shedding, over the next few days unless oil supplies to thermal power plants increase.
Pathirana mentioned the fact that any further increase in global oil prices would make the situation even more difficult. “We hope tensions in Ukraine will not push oil prices further up putting more pressure on Sri Lanka,” he said.
Addressing the 58th Annual General Meeting of The Hotels Association of Sri Lanka (THASL) held on Monday (27) at Shangri-La Hotel, Colombo, President Ranil Wickremesinghe outlined a comprehensive strategy to propel the country’s tourism sector to new heights. Focused on surpassing the target of 5 million tourists and redefining traditional approaches, the President’s vision extends to achieving 7.5 million visitors in the coming years. The President emphasized the need for innovative thinking and collaboration within the industry to ensure sustainable growth.
“When I took over the government, I realized that sustainability alone is not sufficient. How are we going to earn foreign exchange? How are we going to have a positive balance of trade? In that, there were many suggestions. But what is the low-hanging fruit? And one of the low-hanging fruits was tourism. Let’s promote tourism fully,” President Wickremesinghe declared.
The President acknowledged the need to move beyond the existing framework and embrace competition to elevate Sri Lanka’s standing in the global tourism market. Drawing parallels with countries like Vietnam, he questioned why they had more tourists despite being in the industry for a shorter period. President Wickremesinghe stressed the importance of increasing the number of tourists to 2.5 million in the upcoming year and subsequently expanding on this figure.
(PMD)
Business
Free visas for nationals of China, India, Indonesia, Russsia, Thailand, Malaysia and Japan from Monday (27)
The Controller General of Immigration and Emigration has stated that nationals of China, India, Indonesia, Russsia, Thailand, Malaysia and Japan will be granted free visas from Monday 27-11-2023 to 31-03-2024 as a pilot program to rebuild the tourism industry.
Nationals of the above nominated countries possessing, Diplomatic, Official, Public Affairs, Services and Ordinary Passports are eligible to enjoy a visa free regime under this scheme.
The above mentioned nationals should apply for Electronic Travel Authorization (ETA) before arriving in Sri Lanka subject to granting / issuing free of charge up to 31-03-2024.
Under this scheme tourists can enjoy a 30 days free visa period and a double entry facility is permitted within 30 days from the date of first arrival in Sri Lanka.
Free ETA under this scheme can be applied up to 31-03-2024.
The free ETA cannot be extended further and is limited only to thirty (30) days. In case the free ETA period of 30 days expires after 31-03-2024, an extension of visa could be applied subject to paying the appropriate fee.
The Minister of Economy and Planning for the Kingdom of Saudi Arabia. Faisal F. Alibrahim, met with President Ranil Wickremesinghe on Monday (27) at the Presidential Secretariat.
During the discussions, Minister Faisal F. Alibrahim emphasized Saudi Arabia’s keen interest in strengthening economic ties with Sri Lanka across various sectors, including apparels and tourism. He elucidated that his government was focused on expanding economic relations within the region and regarded Sri Lanka with significant importance.
President Ranil Wickremesinghe welcomed the Minister’s comments, asserting that Sri Lanka is actively promoting enhanced cooperation in Asia, including West Asia. He further highlighted that the tourism and agriculture sectors were areas open to greater investment, as the country is committed to modernizing these domains.
(PMD)
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