Sunday Times E-Paper

Govt. policy on moratorium for hotels divided

The government is divided on extending the debt moratorium of the tourism industry that could be detrimental to a sector trying to raise its head amid slow arrivals.

While the Central Bank (CB) Governor Dr. Nandalal Weerasinghe was quoted in the media as stating that extending debt moratoriums to the tourism industry is not a solution and that they need to start paying up, other government officials opine the moratoriums are crucial to sustain the industry.

Sri Lanka Hotels Association President M. Shanthikumar said that if the moratoriums have to be paid like the CB Governor insists then the “industry will go through severe hardship”.

He pointed out that the Governor’s view is different to the stance adopted by President Ranil Wickremesinghe and this has left the industry confused.

Commenting on some of the statements made by the Governor, he noted that it is not just a matter of non-payment of loans over a period of three years but the fact that due to lack of tourists arriving in the country there was no revenue generated by the industry.

“If there is business then the hoteliers would have started to pay back,” he said adding that in fact the industry is actively engaged in promoting the destination and bringing a about a change of perception among travellers.

With most other countries in the region returning to normalcy since the pandemic struck, Sri Lanka is still struggling with a lack of adequate PR and promotion in some of the key markets.

“We still hope the President will support the industry,” he said adding that more than 60 per cent will not be able to repay their loans under the current circumstances.

Tourism and Lands Minister Harin Fernando speaking with the Business Times on the sidelines of a media briefing in Colombo said he has been assured by Presidential advisors that the moratorium for the tourism industry is required.

“Tourism is one of the industries that brings revenues to the country and if you meddle with it that will have a negative impact,” the Minister said.

While some of the larger hotels are capable of paying back their loans, the Minister pointed out that they want to go ahead with the moratorium for the tourism industry.

BUSINESS

en-lk

2023-01-29T08:00:00.0000000Z

2023-01-29T08:00:00.0000000Z

https://sundaytimes.pressreader.com/article/282265259566689

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