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Friday June 2nd, 2023

Sri Lanka expects tourists from Germany, Dubai as airports re-open

ECONOMYNEXT – Sri Lanka is expecting the first tourists from Germany and Dubai after Colombo and Mattala airports re-opened for tourists from January 21, with a daily ceiling of 2,500 tourists raising the possibility of getting a million visitors in 2021, officials said.

The Department of Immigration had issue 75 visas on the first few hours of January 21 for tourists, from America, Germany, the Middle East and China, Sri Lanka Tourism chief Kimarli Fernando said.

“The first guests are coming on SriLankan and Qatar from Germany,” Fernando said. “We are bringing via Emirates from Dubai. Not big numbers but we have to make a start.”

Based on the daily ceiling of 2,500 passengers, about a million tourists was a possibility for 2021 Fernando said, as numbers pick up, though no specific target had been set.

SriLankan Airlines is planning to start flights to Moscow in a bid to capture the tail end of the winter season in February, Chairman Ashok Pathirage said.

He said already about 30 passengers per flight were seen placing bookings.

Sri Lanka is allocating the 2,500 tourists among nine scheduled carriers, with SriLankan Airlines, which is operating the most flights a day getting the biggest allocation.

“We will manage it dynamically,” Director General of Civil Aviation Themiya Abeywickrema said.

SriLankan, Qatar, Etihad, Emirates, Turkish Airlines, China Eastern, Oman Airlines, Singapore and
Kuwait Airways, which have been flying to Sri Lanka before the Covid-19 pandemic are resuming operations.

Maldivian and Ethiopian Airlines had also been given the go ahead. New airlines from Pakistan, Bangladesh had also applied.

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Sri Lanka airport opening for tourist draws South Asian, regional airlines

“We are getting bookings. It will be small at the beginning,” Emirates Country Manager for Sri Lanka and the Maldives Chandana De Silva said.

“May be about 80 passengers but we expect it to improve. We are not expecting overnight 200 to 300 passengers a flight. We may get about 40 to 50 a flight initially. We will co-ordinate with airport to manage the daily ceiling.”

Sri Lanka Tourism had certified about 150 hotels as ‘safe and secure’ with training given on how to handle tourists and take action. About 50 hotels have so far signed up to receive foreign tourists so far.

A hotel that houses foreigners cannot get local guests nor have banquets.

“We are trying to stop tourists from bringing Coronavirus to the community and from the community passing the virus to tourists,” Tourism Minister Prasanna Ranatunga said.

Sri Lanka visas for tourists post Covid-19 with hotels, PCR tests, insurance pre-booked

Sri Lanka is requiring all tourists to undergo a PCR test 96 hours before arrival. In Sri Lanka a test will be taken before arrival and another two based on how long they stay.

Fernando said there were concerns over upfront costs but at the moment the health protocol required the tests.

Sri Lanka Tourism has negotiated a price of 7,500 rupees per test from private hotels. Tourists also have to take a 12 dollar Covid-19 insurance cover of 50,000 which will cover the cost of ambulances, a hospital stay or in the worst case funeral costs. (Colombo/Jan22/2021)

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Sri Lanka to ramp up weekend fuel deliveries after petrol price cut

More deaths reported at Sri Lanka fuel queues

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation will be operating on the weekend to complete all fuel deliveries to end vehicle queues forming outside fuel stations after the price revision earlier in the week, Energy Minister Kanchana Wijesekera said.

“Instructions have been given to CPC and Ceylon Petroleum Storage Terminals to continue fuel deliveries on Saturday and Sunday this week to supply sufficient stocks to all fuel stations,” Minister Wijesekera said in a TWITTER.COM MESSAGE

“To reduce expenses on overtime, CPC and CPSTL have not been operating on Sundays and public holidays in the last 4 months,” Wijesekera said.

“Non-placement of orders by fuel stations from last Saturday, anticipating a price reduction, not maintaining minimum stocks, immediate increase in demand by consumers after the price revision, and quota increase have created shortages in the fuel stations.”

The Minister in April 2023 said all fuel stations would be required to maintain a minimum of 50 percent of stock tank capacity.

“I have asked CPC to review and suspend the license of fuel stations that had not maintained minimum stocks.” (Colombo/ June 02/ 2023)

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Sri Lanka bonds yield up at close, rupee at 291.75/292.50 against the US dollar

ECONOMYNEXT – Sri Lanka’s bonds closed steady on Friday, dealers said, following the central bank’s decision to cut its main policy rate by 250 basis points.

The Spot US dollar closed at 291.75/292.50 rupees, dealers said.

The rupee opened at 290.25/75 to the US dollar Thursday and closed at 292.50/295.50 to the US dollar.

A bond maturing on 15.09.2027 closed at 24.70/90 percent up from 24.50/90 percent a day earlier, dealers said.

A bond maturing on 15.05.2026 closed at 25.75/26.25 percent up from 25.00/26.00 percent a day earlier.

A bond maturing on 01.05.2025 closed at 27.00/30 percent, up from 26.30/27.00 per cent at last close.

A bond maturing on 01.07.2032 closed at 20.25/21.00 percent, up from 20.00/40 per cent at last close.
(Colombo/ June 02/2023)

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Sri Lanka’s shares edge up on positive macroeconomic sentiments

ECONOMYNEXT – Sri Lanka’s shares closed higher in trade on Friday, over positive macro-sentiments encouraging investors to redeem their interest towards buying, an analyst said.

The main All Share Price Index was up 0.72 percent or 62.19 points to 8,753.80,  while the most liquid index S&P SL20 was up 0.68 percent or 16.87 points to 2,487.29.

Sri Lanka’s inflation in the 12-months to May 2023 has eased to 25.2 percent from 35.3 percent a month earlier according to a revised Colombo Consumer Price Index calculated by the state statistics office.

Prior to the Monetary Policy investors were quite optimistic that inflation is to lower and interest rates will decrease and since exp, an analyst said.

Sri Lanka Central Bank is waiting for the government proposal on the domestic debt restructuring (DDR), the central bank governor Nandalal Weerasinghe said amid uncertainty over DDR and speculations over instability in the banking sector.

“On debt restructuring, the borrower is the ministry of finance’s treasury. Certainly we will announce what the strategy will be. We are waiting for a government proposal,” Weerasinghe said.

Sri Lanka’s investors are waiting on assurances to be made on debt restructuring and optimization, Central Bank Governor Nandalal Weerasinghe said, “It is up to the government to clear the uncertainty, because from our side we have done that part.”

The central bank cut the key policy rates by 250 basis points to spur a faltering economic growth as inflation was decelerating faster than it projected.

The speculation of DDR has hit the market and the risk premium has kept the market lending rates well above the central bank’s policy rates. The government has yet to present its plans on DDR.

Weerasinghe said the central bank has done its best to reduce the risk premium through bringing down the market lending rates while keeping the policy rates unchanged.

Sri Lanka’s President Ranil Wickremesinghe has discussed progress of International Monetary Fund program and debt restructuring during a visit of Deputy Managing Director Kenji Okamura, statement said.

“The discussion primarily focused on the progress of the IMF program between Sri Lanka and the IMF,” a statement from President’s office said.

“Attention was also paid to the on-going debt restructuring negotiations.”

However Officials from IMF have said Sri Lanka has to focus on expanding taxes.

“We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability,” Deputy Managing Director Kenji Okamura said in a statement.

The finance ministry this week issued rules requiring everyone above 18 year of age to register to pay income tax.

“I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner.

The market generated a revenue of 738 million rupees, while the daily average was 1 billion rupees.

Top gainers in trade were Vallibel One, LOLC Finance and Browns Investment. (Colombo/June02/2023)

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