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Sri Lanka mulls possible relief for leased vehicles used in tourism

EC0N0MYNEXT – Sri Lanka is considering a request made to give debt relief for owners of leased vehicles used in tourism, State Minister Harsha de Silva said.

The tourist industry has said many third party vehicle owners who provided transport to tourists will face difficulty in meeting lease payments after Easter Sunday bombings.

The request will be considered at a ministerial committee appointed to look into problems facing the tourism sector when it meets Friday (today), de Silva told parliament.

Sri Lanka has already announced relief for bank borrowings, of the hotels and tourism companies, involving a moratorium on debt until March 31 and working capital support.

The exposure of the banking sector to tourism is about 280 billion rupees, an officials said.

Most leases are given by non-bank finance and leasing companies.

Due to monetary instability in 2018 which led to a collapse of the rupee, many domestic firm are facing lower demand. Banks and finance companies usually face bad loans after currency collapses.

Finance companies generally deal with riskier clients than banks. (Colombo/May10/2019)

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