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Thursday June 30th, 2022

Sri Lanka tourists hotels asked to take payments only in foreign exchange

ECONOMYNEXT – Tourists visiting Sri Lanka are encouraged to pay hotels in foreign currency instead of converting money into rupees at the kerb market as the country is facing foreign exchange shortages due to liquidity injections.

The central bank said that registered hotels would be mandated to collect payments from tourists only in foreign exchange.

“We would ask the foreigners to pay either in credit card or at the time of the check out they would be paying in their currency of a foreign nation,” Central Bank Govenror Nivard Cabral said after raising rates 50 basis points, which would go some way into reducing money printing and forex shortages.

“If they encash, then they will have to do it at an authorized dealer, and show that receipt it was encashed by a certified dealer for that value.”

Tourist hotels in turn are expected to deposit the dollars in banks within two or three days.

Hotels typically pay a lower rate to tourists than commercial banks. Commercial banks are now expected to maintain a 200 to the US dollar peg, which has been weakened due to open market operations to keep rates down.

In the kerb market the dollars is around 240 to the US dollar.

After Sri Lanka opened for tourism, for the first time in 20 months it received 80,000 tourists in December 2021 compared to around 200,000 a month pre-pandemic.

So far in January around 45,000 tourists, mostly Russians have come to the country. (Colombo/Jan22/2022)

Comments (5)

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  1. d.s.delima says:

    what is this ,big mistake, there is lot of more countries to visit, not only srilanka, no milk, no rice, no gas, currancy is under value, prices are very high, rates in the hotel paying for dollers less,if its like this only back packers will come, guest houses will be the choice, poor hotel staff will suffer,i will plan my holiday in guest houses, not any more hotels,

  2. S.Mahendra says:

    Now that we have come down to physically searching for
    Dollars in the market, the I/E Dept. Citizenship Div. can
    step in. I suggest that they call for Dual Citizenship Fees in
    USD (Main applicant apprx.1600 $ and others appox.270 each) being current rates.
    The back-log in the Cit.Div. is astounding. Governor of CB Mr. Cabrral might step in to direct them how a payment link to Applicants resident in Foreign countries can make use of such. Of course the Cit. Div, will make loopholes to upset it, as people calling direct have “rewards” attached. This is most common customary matter in this Dept.! Even the present setup in the linked payment is not working 100% . The mere backlog built up with devious intentions MUST be cleared – the staff shifted routinely is needed to end
    corruption. Even Security cameras have been organized to
    avoid detection of “bribing” spots is a point! Corruption in
    SL is “follow the master” pattern.

  3. Jock says:

    Sri Lanka is such a rip off. Why would tourists come to a country where everyone from the street boys right up to the Central Bank and Government are out to scam you?

  4. Tushara says:

    why only hotels? what about other vendors? Food, Travel and other tourist items. Next I’ll be paying in $$ at Saraswathi or Pillaw’s.

  5. Ian Gale says:

    Hello,

    I am visiting from the UK in a couple of weeks. Would I be as well bring £ instead of using a credit card to withdraw rupees please? Thank You

View all comments (5)

Comments (5)

Your email address will not be published.

  1. d.s.delima says:

    what is this ,big mistake, there is lot of more countries to visit, not only srilanka, no milk, no rice, no gas, currancy is under value, prices are very high, rates in the hotel paying for dollers less,if its like this only back packers will come, guest houses will be the choice, poor hotel staff will suffer,i will plan my holiday in guest houses, not any more hotels,

  2. S.Mahendra says:

    Now that we have come down to physically searching for
    Dollars in the market, the I/E Dept. Citizenship Div. can
    step in. I suggest that they call for Dual Citizenship Fees in
    USD (Main applicant apprx.1600 $ and others appox.270 each) being current rates.
    The back-log in the Cit.Div. is astounding. Governor of CB Mr. Cabrral might step in to direct them how a payment link to Applicants resident in Foreign countries can make use of such. Of course the Cit. Div, will make loopholes to upset it, as people calling direct have “rewards” attached. This is most common customary matter in this Dept.! Even the present setup in the linked payment is not working 100% . The mere backlog built up with devious intentions MUST be cleared – the staff shifted routinely is needed to end
    corruption. Even Security cameras have been organized to
    avoid detection of “bribing” spots is a point! Corruption in
    SL is “follow the master” pattern.

  3. Jock says:

    Sri Lanka is such a rip off. Why would tourists come to a country where everyone from the street boys right up to the Central Bank and Government are out to scam you?

  4. Tushara says:

    why only hotels? what about other vendors? Food, Travel and other tourist items. Next I’ll be paying in $$ at Saraswathi or Pillaw’s.

  5. Ian Gale says:

    Hello,

    I am visiting from the UK in a couple of weeks. Would I be as well bring £ instead of using a credit card to withdraw rupees please? Thank You