An Echelon Media Company
Thursday December 7th, 2023

Sri Lanka to offer winter tourism refuge from Powell-Lagarde bubble

Sri Lanka’s east coast has its peak tourism season from May through September

ECONOMYNEXT – Sri Lanka is looking to attract longer-stay tourists during the winter season as the island nation sees some stability as the commodity queues ease and high energy prices from  the worst commodity bubble fired by reserve currency in decades keep energy prices up.

The US Federal Reserve under Jerome Powell and the ECB under Christine Large printed money to ‘create jobs’ claiming that inflation was non-monetary and due to ‘supply chain shocks’ triggering the worst inflation in 40 years.

Europe in particular is expecting high heating gas prices after Russia cut off supplies, though commodity prices have eased somewhat as the Fed started tightening monetary policy.

The commodity bubble, which has also pushed up food and metals prices, has also been blamed on Russia’s war on Ukraine by Western politicians and amplified by the media.

“In the European market, in countries like Germany, they are trying to escape the winter and are also having issues with fuel and gas, so heating is going to be an issue for them,” Sri Lanka Tourism Development Authority (SLTDA) Chairman Priyantha Fernando said.

“So there could be a different market segment that will be looking at long-haul destinations for longer vacations as opposed to the 10-14 days. But who will spend their entire winter in a country like Sri Lanka?”

Fernando told EconomyNext that SLTDA is targeting this segment and expects to see some results.

The authority plans to attend the World Travel & Tourism Meet in London in November, before which it plans to carry out a number of other promotional activities.

Winter is generally a season in which Sri Lanka sees the highest number of tourist arrivals. In the last few years Russian arrivals have played a role.

Sri Lanka faced severe fuel shortages after the central bank printed money and created forex shortages, but fuel supplies are now easing with rationing and some improvement in monetary stability after private credit slowed.

However, there is heavy competition for the winder segment as countries such as Vietnam, Laos, Thailand, have already cashed on the concept.

“We need to provide the right product and think out of the box in this segment. It’s highly competitive,” said Fernando.

“On the positive side, we are getting good inquiries and, come November and December, we should look at more productive numbers like even 150,000 a month,” he said.

By the end of 2022, SLTDA is hopeful of welcoming one million tourists and generating a revenue of 1.8 billion dollars.

“We revised the tourism target from 800,000 to one million as we see opportunities despite the bottle neck,” said Fernando. (Colombo/Sep18/2022)

Comments (1)

Your email address will not be published. Required fields are marked *

  1. robbo says:

    Start by getting the 6 month visa sorted, they have been talking about it for years and nothing ever happens, watch the spike as soon as they do…..

View all comments (1)

Comments (1)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. robbo says:

    Start by getting the 6 month visa sorted, they have been talking about it for years and nothing ever happens, watch the spike as soon as they do…..

COP28 sees new era for climate action with $57 bln pledge; Sri Lanka’s proposals need approval

ECONOMYNEXT – The 2023 United Nations Climate Change Conference (COP28) has witnessed governments, businesses, investors, and philanthropies announcing support of over $57 billion across the climate agenda in just the first four days of the global event with eight pledges and declarations receiving historic support.

After a historic deal to operationalize a fund for climate impact response on the first day, announcements have poured in across the entire climate agenda, including on finance, health, food, nature, and energy.

On climate finance, the COP28 host United Arab Emirates launched a $30 billion catalytic fund, ALTÉRRA, with an emphasis on unlocking private finance across the Global South.

The host nation also has announced $200 million for SDRs and $150 million for water scarcity.

The World Bank has announced an increase of $9 billion annually to finance climate-related projects, while the first two days of COP28 saw $725 million in pledges after a historic response to loss and damage was operationalized.

Eight new declarations have been announced which are expected to help transform every major system of the global economy.

These include the first ever declarations on food systems transformation and health, plus declarations on renewable energy and efficiency, as well as initiatives to decarbonize heavy emitting industries.

The eight declarations are:

  • The Global Renewables and Energy Efficiency Pledge has been endorsed by 119 countries.
  • The COP28 UAE Declaration on Agriculture, Food, & Climate has received endorsements from 137 countries.
  • The COP28 UAE Declaration on Climate and Health has been endorsed by 125 countries.
  • The COP28 UAE Declaration on Climate Relief, Recovery & Peace has been endorsed by 74 countries and 40 organizations.
  • The COP28 UAE Declaration on Climate Finance has been endorsed by 12 countries.
  • The Coalition for High Ambition Multilevel Partnerships (Champ) Pledge has been endorsed by 64 countries.
  • The Oil and Gas Decarbonization Charter has been endorsed by 51 companies, representing 40 percent of global oil production.
  • The Industrial Transition Accelerator has been endorsed by 35 companies and six industry associations, including World Steel Association, International Aluminium Institute, Global Renewable Alliance, Global Cement and Concrete Association, Oil and Gas Climate Initiative, International Air Transport Association.

Three additional declarations will be announced in the coming days on hydrogen, cooling, and gender. The number of countries supporting these declarations and pledges is growing and demonstrates an unprecedented level of inclusivity at this COP.

Sri Lanka President Ranil Wickremesinghe announced three new proposals: Climate Justice Forum (CJF), Tropical Belt Initiative (TBI), and International Climate Change University in Sri Lanka.

However, the proposals are yet to get approval from the general UN body though the island nation’s authorities expect wide support for the moves.

“What we have done is to talk to countries about the initiatives and launch them. Next step is for them to be formally recognized by the main body,” Ruwan Wijewardena, the Senior Advisor to President Wickremesinghe on Climate change, told Economy Next.

Breakdown of financial pledges and contributions so far:

  • Loss and Damage: $725 million
  • Green Climate Fund: $3.5 billion (increasing second replenishment to $12.8 billion)
  • Renewable Energy: $2.5 billion
  • Technology: $568 million
  • Methane: $1.2 billion
  • Climate Finance: Over $30 billion from UAE (plus $200 million in Special Drawing Rights and an increase of $9 billion annually from the World Bank)
  • Food: $2.6 Billion
  • Nature: $2.6 Billion
  • Health: $2.7 billion
  • Water: $150 million
  • Relief, Recovery and Peace: $1.2 billion
  • Local Climate Action: $467 million (Dubai/Dec 6/2023)
Continue Reading

Sri Lanka to start international tourism branding campaign

ECONOMYNEXT – Sri Lanka will soon start a tourism international marketing campaign under the theme ‘You will come back for more,” Tourism Minister Harin Fernando said.

“We have not had a branding campaign for 15 years,” Fernando told parliament. “A campaign has been developed by Ogilvy.

“It will help us reach the target of 2.3 million tourists next year.”

This year Sri Lanka is expecting a 1.5 million tourists with close to 1.3 million reached by November.

About 6,000 tourists are now coming each day, at the moment he said.

On December 10, three cruise ships are due. (Colombo/Nov06/2023)

Continue Reading

Sri Lanka 3-month Treasuries yields fall

ECONOMYNEXT – Sri Lanka’s Treasury bill yields eased across maturities with the tree month yield falling 19 basis points to 14.67 percent, data from the state debt office showed.

A total of 185 billion rupees in bills were sold, with sharply lower than offered volumes in 12-months sold.

The debt office offered 55 billion rupees of 3 -month bills and sold 87 billion.

92 billion rupees of 6-month bills were sold after offering 60 billion at 14.38 percent down 14 basis points.

Only 5.2 billion rupees of 12-month bills were sold after offering 70 billion rupees, at 12.88 percent, down 01 basis point. (Colombo/Dec06/2023)

Continue Reading