Sri Lanka to give subsidies to develop domestic air routes

ECONOMYNEXT – Sri Lanka’s tourist promotion office will give subsidies to domestic airlines that operate scheduled services to selected destinations, the state information office said.

Sri Lanka Tourist Development Authority will provide viability gap funding (VGF) of between 100 to 150 dollar per flight for airlines for one year to fill the differences between costs and revenue.

The funds will be provided on a model development by Sri Lanka’ National Agency for Public Private Partnerships.

The cabinet of ministers had approved a proposal by Prime Minister Ranil Wickremesinghe to provide VGF funding for airlines that provide detailed costing and operational plans for a year.

Sri Lanka’s military now operates flights to some destinations like Trincomalee and Jaffna. (Colombo/Sept18/2019)