Good times ahead for tourism, other key sectors

Central Bank Governor Ajith Nivard Cabraal stated that the pressure brought on  main sectors in the country by the economic downturn due to the pandemic will gradually be eased by January next year.

 

“Almost all key economic sectors of the country have suffered setbacks as a result of the pandemic. However, this situation will be at its maximum until next January and it will gradually decline after that,” Governor Cabraal added.

 

The Central Bank Governor made these remarks at a special discussion held at the Central Bank Auditorium recently regarding the problems faced by those engaged in the tourism sector.

The discussion was held at the request of Tourism Minister Prasanna Ranatunga.

The issues currently affecting the institutions under the Ministry of tourism including Tourism, Civil Aviation, Airports and Aviation and SriLankan Airlines were discussed at length.

 

The Minister requested the Central Bank Governor to take steps to extend the relief granted to those engaged in the tourism industry until the industry recovers properly. The Minister also said there is a request from those engaged in the tourism sector to restructure loans obtained by them. The CB Governor said that CB will provide recommendations to relevant banks if loan recipients have made requests to their banks.

 

The Governor also emphasized that the loan relief package and leasing concessions provided to those engaged in the sector will be effective till June next year and could be extended further.

 

The Minister said that people in the tourism industry have complained that leasing companies charge extra interest on acquisitions and concessions for leasing.

 

The CB Governor also instructed the SLTDA to notify the Central Bank if their vehicles have been seized by the Leasing Companies or if these institutions have engaged in collecting extra payments from those engaged in the Tourism industry. He said that stern action will be taken against Leasing Companies if they have done so.

 

The Governor of the Central Bank pointed out that Rs. 4,100 billion had been provided as loan relief in the recent past and that the interest on loans had been reduced by Rs. 330 billion.