Although there is a long road ahead before Sri Lanka’s tourism industry recovers, at least tourism businesses will get some short-term relief.
Sri Lanka’s government approved a relief package including tax concessions, a one-yaer debt moratorium and working capital loans.
"The Central Bank is now in the process of issuing circulars in this regard to banks," State Minister for Finance Eran Wickramaratne said during a media briefing.
‘Enterprise Sri Lanka’ tourism loans will be interest free and working capital loans would also be provided with a two-year repayment term.
"The interest will be at 3.4% as the government is giving a 75 percent interest subsidy," Wickramaratne said.
The minister also announced that VAT will drop to 5% from the current 15% for registered hotels and tour operators for a year.
The government said more than 15 billion rupees had already handed out for tourism development projects.
The government expects a long hard road to recovery following the deadly Easter Sunday attacks which could last up to two years before the industry gets back on its feet to pre-bombing levels.
