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Thursday October 22nd, 2026

Tourism: Maldivian and Nepali business leaders urge collaboration to revive industry

PRISTINE MOUNTAINS OF NEPAL – The country struggles with getting visitors back on the slopes

ECONOMYNEXT -The post COVID- 19 revival of the tourism industry across South Asia will require more regional collaboration, even as each country devises its own strategies in dealing with internal challenges.

Indeed, for countries such as the Maldives and Nepal, whose economies are heavily dependent on the tourism sector, getting their countries back on the ‘safe destinations’ list is of utmost importance. The revival of the tourist industry will certainly depend on all stakeholders, governments and the private sector working in tandem.

Participating in an online business dialogue, ‘Restart Asian Economies – Ideas and Actions for the Hotel Industry,’ organized by the Friederich Neumann Foundation for Freedom, South Asia, on September 21, Dr Mariyam Shakeela of the Maldives and Bhawani Rana of Nepal shared the challenges faced and initiatives taken their respective governments and on regional cooperation to boost the troubled tourism industry.

Shakeela, a former Cabinet Minister is the CEO of SIMDI Group, while Rana is currently the President of the Nepalese Chamber of Commerce and Industry and also the Managing Director of Hotel Sneha Pvt. Ltd.

Both presenters agreed that regionally, it is time to end airline price wars, so travel within the SAARC region, in particular, would be more affordable. Such an initiative could, for one, promote more travel between South Asian nations and be especially attractive for middle-income earners.

In the case of Nepal, pointed out Rana, direct and low-cost flights would ensure more Nepalese visiting Sri Lanka and the Maldives and vice versa. Currently having to take a connecting flight to both these countries, means more Nepalese limiting their travel to neighbouring India or Thailand. Travel via ship and crossing borders through other modes of transport too should be explored.

Here, they point out that better government to government cooperation is essential, leaving aside political agendas and biases, to open up more regional travel. Following the EU example may be one way to go, says Shakeela. She also suggests a regional hub that could address pandemic situations, similar to that brought about by COVID- 19.

They point out that South Asia itself has a rich multicultural heritage and is home to much biodiversity.

Therefore, more package tours encompassing two or three countries within South Asia could be one initiative. For instance, one package could promote visiting the sunny beaches of the Maldives and the serene mountains of Nepal. There is also much potential in introducing a Buddhist circuit encompassing Nepal, India, Sri Lanka etc. or the Hindu package, Ayurveda and meditation, which Rana suggests could be promoted as life-line as opposed to lifestyle tourism.

Says Shakeela, providing regional rehabilitation centres and geriatric facilities would be another option, while also promoting each other’s countries as wedding or conference destinations. The South Asian Association for Regional Cooperation (SAARC) and The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) too need to explore more strategies that would boost regional tourism, the two pointed out.

Current health guidelines the world over requires a two week quarantine period on arrival and on return to home countries. How would this now work for travellers taking time off from work? Would governments and private sector employers adjust vacation leave to include these requirements?

Government to government Memorandums of Understanding on safety protocols too should be explored, they added.

TOURIST DEPENDENT – Nepal and the Maldives want to reduce dependancy on the Tourist Industry


With working from home now a trend, would governments extend visas to allow tourists to move to their preferred destinations and convert their stays to long working holidays?

Meanwhile, both countries are addressing challenges peculiar to them; for the Maldives, just as it works on winning back source markets, it is also about developing their human resources, particularly in the health care system so they would be better prepared if and when another emergency situation such as COVID-19 occurs.

Says Shakeela, the government has lost no time in launching various campaigns, such as “Rediscover Maldives” and their ‘ Sun will Shine again’ Facebook project introduced just prior to reopening the airport, to jump-start the industry. Given that most of their islands are resorts, their ‘One Island, One Resort” campaign points to their ability to ensure social distancing and limiting visitors to a resort island and upholding safety standards from the moment of booking a vacation to baggage handling and beyond. It’s about government and private sector working hand in hand to come up with solutions. Private sector initiatives could include more networking between country to country tour operators.

Looking at the most immediate initiatives, the Maldives is concentrating on making rooms safe and hygienic by limiting the items that can be touched or introducing touch-free toiletries for instance. In short, the country is working towards investing in the Maldives Brand, and creating a sustainable, eco-friendly tourism experience.

As Shakeela pointed out, the effect of the pandemic on the Maldives has been worse than the Tsunami or the Global financial crisis. With close to 90% of the country’s businesses directly or indirectly connected to the tourism industry, its economy has contracted significantly. While most staff on the resorts has been made redundant or retained with no pay or reduced pay, and services of vendors and suppliers to the hotels temporarily discontinued, most former profitable business ventures have closed down or are on verge of doing so. It is now an issue of balancing ‘lives to livelihood,’ she pointed out. Fully projected recovery of the sector is expected around 2024.

The Maldives is hopeful, however; having opened their borders to international travel in mid-July, tourists are slowly but surely trickling in, and according to Shakeela, September 18 had recorded 708 arrivals, the highest since the reopening.

The situation is no better in Nepal, where tourism is a major foreign exchange earner. Following two years of political turmoil, and a new constitution just three years old, Nepal had identified 2020 as the Year of Tourism. The government’s monetary policy was focussed on the tourism sector and geared to attracting more foreign investment and providing tax holidays, stated Rana.

Nepal, which attracts nearly 1.2 million tourists yearly, sees more than a thousand arriving in the country to go trekking in the Himalayas and Everest mountains. But COVID- 19 has put most trekkers and tour operators out of work and negatively impacted hotel staff. Also affected are industries indirectly connected to the hospitality trade, for example Spa’s and handicrafts. A country which had a 65% occupancy rate pre-COVID, had seen it drop to 20% during the lockdown, and has been at zero since, she said.

Nepal too has now reopened its borders and has also recommenced domestic flights. Says Rana, it is time to diversify. Nepal needs to focus more on promoting its other attributes such as its rare fauna and flora and birds, while also targeting more high spending tourists. She explained that tripartite agreements have been introduced between the government, private sector and the employees to avoid retrenchment. Government loans have been offered to meet staff wages, and support has also come in from the Hotels Association. As well, staff has been put on a 15 day on-off rotational shift, where even though their earnings are reduced they continue to be employed.

Preserving the environment too is crucial for the two countries that are heavily dependent on their natural resources to attract tourists; climate change has destroyed some islands in the Maldives and Nepal has been experiencing erratic weather patterns and melting ice.

Both Shakeela and Rana also explained the various barriers women entrepreneurs face in striking out on their own, in heavily male dependent cultures.

If COVID-19 has proved one thing, it is that both countries have realised that being heavily dependent on tourism to boost their economy is not quite prudent. And even as various measures are being considered and adopted to revive that industry, both Nepal and the Maldives has begun investing in other resources such as fishery and agriculture and development projects that will ensure smooth cash flow and enhance economic activity in other sectors. (Colombo, September 28, 2020)

Kshama Ranawana is a freelance contributor

Sri Lanka rupee closes weaker at 332.20/35 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 332.20/35 to the US dollar in the spot market on Thursday, from 331.90/332.05 the previous day, while bond yields closed steady to higher on selected tenors, dealers said.

A bond maturing on 15.09.2029 closed flat at 11.05/15 percent.

A bond maturing on 01.08.2030 closed at 11.55/60 percent, up from 11.50/60 percent.

A bond maturing on 15.10.2030 closed at 11.60/70 percent, up from 11.55/65 percent.

A bond maturing on 01.12.2031 closed at 11.90/12.00 percent, up from 11.80/90 percent.

A bond maturing on 15.01.2033 closed at 12.20/25 percent, up from 12.13/18 percent.

A bond maturing on 15.10.2034 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Oct22/2026)

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Sri Lanka stocks close down; ASPI drops 1-pct, turnover at Rs1.1bn

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Thursday, CSE data showed, with the benchmark All Share Price Index falling 1.05 percent.

The ASPI was down 209.38 points at 19,717.92, while the more liquid S&P SL20 fell 0.68 percent, or 38.43 points, to 5,618.48.

Positive contributors to the ASPI were Ceylon Tobacco Company (up 0.67 percent at 1,795.50 rupees), The Kandy Hotels Company (up 7.77 percent at 11.10 rupees), Asia Asset Finance (up 3.89 percent at 42.70 rupees), and Resus Energy (up 5.06 percent at 8.30 rupees).

Distilleries Company of Sri Lanka (down 3.60 percent at 50.90 rupees), Hatton National Bank (down 1.20 percent at 369.75 rupees), Dialog Axiata (down 0.93 percent at 42.40 rupees), Singer Sri Lanka (down 3.67 percent at 68.20 rupees), and Commercial Bank of Ceylon (down 0.38 percent at 196.25 rupees) were top negative contributors.

Market turnover was 1.10 billion rupees. The banking sector led turnover with 249.91 million rupees, followed by capital goods with 240.14 million rupees. Crossings totaled 155.78 million rupees, coming from Sampath Bank (93.25 million rupees) and Commercial Credit and Finance (62.53 million rupees).

Asia Asset Finance plans to raise 2 billion rupees through an issuance of 20 million listed, rated, unsecured, senior, redeemable 5-year debentures priced at 100 rupees each, subject to regulatory approval.

Vallibel One PLC said it had increased its direct holding in The Fortress Resorts PLC to 49.93 percent after purchasing 34.74 million shares from concert parties Vallibel Leisure (Pvt) Ltd and Dhammika Perera, bringing its collective group holding alongside subsidiaries to 53.89 percent. (Colombo/Oct22/2026)

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Sri Lanka sells extra Rs2.2bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 2,282 million rupees of treasury bills offered on tap at average rates of 9.32 percent, 9.44 percent and 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 82.893 billion rupees.

Total market subscription was 2,282 million rupees.

The debt office sold a 3-month bill at 9.32 percent.

The debt office sold a 6-month bill at 9.44 percent.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (21) the debt office raised 80.61 billion rupees of 3, 6 and 12 month bills after offering 100 billion.

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Sri Lanka Treasury bill yields rise on shorter term, less bills sold

The settlement date is October 23. (Colombo/Oct15/2026)

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Sri Lanka NDB Sept quarter profit down 21-pct to Rs.2.8bn

ECONOMYNEXT — Profit in Sri Lanka’s National Development Bank PLC (NDB) fell 21 percent to Rs. 2.8 billion for the quarter ended September 30, 2026, compared to Rs. 3.5 billion in the same quarter last year amid high interest expenses, its filing to the Colombo Stock Exchange showed.

The group recorded basic earnings of Rs. 6.40 per share for the third quarter (Q3), from Rs. 8.09 rupees per share a year ago.

The Group’s interest expenses rose by 22.7 percent in the quarter to Rs. 16.1 billion.

Gross income for the quarter rose 4.3 percent to Rs. 27.1 billion, while interest income increased by 8.8 percent Rs. 24.1 billion.

However, due to high interest expenses, the net interest income fell  11.2 percent to Rs. 8.1 billion rupees.

“Our Q3 2026 performance reflects the disciplined execution of our strategy to recalibrate the balance sheet and pursue measured and sustainable growth in line with our strategic priorities,” Kelum Edirisinghe, the Bank’s Director/CEO said.

“Ultimately, these results reaffirm the underlying strength and resilience of our franchise.”

The bank detected a financial fraud worth Rs. 13.64 billion.

It said the gross impact of the fraud applicable for the nine months of this year Rs. 2.6 billion and the nine months of last year is Rs. 4.5 billion.

It did not elaborate adjustments in made in the past year’s accounts over the gross impact of the rest of the Rs. 13.6 billion fraud.

For the nine months ended on September 30, the banking remained the primary operational driver, generating Rs. 80.3 billion in revenue and delivering Rs. 14.9 billion in segment profit before tax.

Among other segments, capital markets delivered a segment result of Rs. 213.8 million for the nine months, while property investment generated Rs. 201.3 million and other operations contributed Rs. 4.5 million.

Total assets reached Rs. 983.9 billion as of September 30, 2026. Net cash flow from operating activities stood at an inflow of Rs. 24.6 billion, with total interest-bearing borrowings at Rs. 158.6 billion and customer deposits reaching Rs. 716.9 billion.

NDB Bank shares closed at 103.00 rupees, down 0.72 percent or 0.75 rupees. (Colombo/Oct22/2026)

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EXPLAINER – From PTA to PS-TB: Is Sri Lanka only replacing the name?

ECONOMYNEXT – Sri Lanka’s decades-long engagement with extraordinary security legislation has reached a pivotal juncture with President Anura Kumara Dissanayake’s government has decided to do away with the draconian Prevention of Terrorism Act (PTA) enacted in 1979.

Instead, the government tabled the Protection of the State from Terrorism Bill (PS-TB) in Parliament.

However, an exhaustive legal analysis by Amnesty International, alongside scrutiny from civil society and legal experts, suggests that rather than dismantling a legacy of state abuse, the new legislation threatens to institutionalize arbitrary executive powers under a modernized statutory veneer.

For domestic citizens, foreign observers, human rights defenders, and international investors, the bill presents far-reaching implications for human rights, judicial independence, and Sri Lanka’s broader economic stability, analysts say.

To understand the concerns surrounding the new bill, one must examine the legacy of the law it aims to replace.

Enacted in 1979 as a temporary emergency measure during the onset of civil unrest, the PTA was permanently codified in 1982 and became a cornerstone of Sri Lanka’s security architecture for over four decades.

Historically, the PTA served as a primary mechanism for systemic state abuse, arbitrary arrest, and human rights violations.

The law was disproportionately deployed against ethnic minorities, political dissidents, journalists, trade unionists, and peaceful protesters, analysts say.

Under the PTA, individuals could be detained for up to 18 months under administrative Detention Orders issued by the Minister of Defence without formal charges or meaningful judicial review.

The act uniquely rendered confessions made to senior police officers admissible in court, creating structural incentives for torture, coerced statements, and extended solitary confinement.

By shielding security personnel with broad immunity clauses and denying suspects prompt access to legal counsel or bail, the PTA enabled state actors to operate with near-total impunity, leaving victims without legal redress.

Despite repeated pledges by successive administrations and explicit commitments made to international bodies, the PTA remained actively used, with human rights data confirming dozens of detentions through 2025 and 2026.

The latest Protection of the State from Terrorism Bill introduces minor modifications compared to earlier legislative iterations, such as late-2025 proposals.

Most notably, the updated draft incorporates judicial oversight over executive decisions to proscribe organizations and removes vague clauses that previously criminalized acts merely intended to infringe on national sovereignty.

However, as Amnesty International highlights, the new bill retains significant grey areas and structural deficiencies that fall far short of international human rights standards.

“Any attempt to revise a counterterror law which has time and time again been weaponized by the authorities against dissent, government critics, and minorities must be given the utmost scrutiny,” said Smriti Singh, Amnesty International’s South Asia Director.

“The new bill must break with this legacy of abuse, not give the authorities new tools to silence dissent.”

“Serious Human Rights Concerns”

“Sri Lanka’s history of abusing such legislation makes robust, enforceable safeguards essential, and these remain inadequately addressed in the bill, sparking serious human rights concerns.”

While narrower than earlier drafts, the definition of terrorism in the PS-TB remains dangerously elastic.

The bill does not explicitly exclude peaceful protests, trade union actions, civic advocacy, or medical and humanitarian assistance from being classified as terror offenses.

Instead, it merely notes that such activities are not by themselves sufficient to establish an offense, a qualification that leaves substantial room for subjective interpretation and potential criminalization of civil dissent.

Furthermore, the bill penalizes acts causing a mere likelihood of substantial economic loss, setting a low threshold that could potentially classify mass strikes or blockades as acts of terror.

“Allowing a person to be detained for up to a year before being charged, with the prospect of a further year in pretrial detention, raises grave concerns about arbitrary detention and the right to a fair trial. No one should have to spend years in detention while the state delays bringing a case to trial,” said Smriti Singh.

“We urge Sri Lanka’s parliament to withdraw this bill and reform the law in line with international human rights law and standards. Until this is done, the PTA should not be misused further.”

In addition to broad definitions, the procedural safeguards within the proposed law remain deeply compromised.

The bill permits administrative detention for up to one year without formal charges, alongside the possibility of an additional year in pre-trial detention.

A cumulative two-year period of pre-trial deprivation of liberty severely undermines the presumption of innocence, the right to a fair trial within a reasonable timeframe, and protection against arbitrary detention.

Furthermore, although the bill establishes a review committee to examine the legality of Detention Orders, its members are appointed directly by the Minister of Defence, meaning an executive-appointed panel cannot substitute for independent, impartial judicial review within the regular criminal justice system.

Wide Police Powers

The draft also extends police powers, including search, arrest, and seizure authority, to the armed forces and coast guard, while empowering the Attorney General, with High Court approval, to suspend or defer prosecutions for up to twenty years in exchange for suspect concessions, leaving individuals exposed to prosecution for decades.

The passage of the PS-TB in its current form carries profound risks across political, social, and economic spheres.

For the domestic public and civil society, analysts say, the law risks creating a chilling effect on democratic expression by failing to explicitly protect industrial action and civic advocacy, exposing citizens and non-governmental organizations to the perpetual threat of weaponized legal proceedings whenever opposing government policies.

For foreign nationals, researchers, and tourists, overbroad security provisions that grant sweeping arrest powers to police and allow extended detention without charge heighten jurisdictional risks during sensitive political climate shifts.

Foreign investors and international trade partners must consider the institutional stability and predictable rule of law necessary for long-term commitment.

A national security framework that permits executive overreach undermines corporate governance standards and heightened environmental, social, and governance (ESG) compliance.

Crucially, failing to align counterterrorism legislation with international human rights benchmarks jeopardizes Sri Lanka’s access to vital export preferences, such as the European Union’s GSP+ tariff scheme, which hinges on compliance with core international conventions.

Replacing the PTA was meant to mark Sri Lanka’s definitive break with an era of state-sanctioned impunity.

However, as the Protection of the State from Terrorism Bill moves through constitutional review at the Supreme Court and toward parliamentary debate, international human rights organizations and legal experts agree that the proposed statute merely re-packages executive power.

To build a secure, stable, and economically prosperous society, Sri Lanka requires a counterterrorism framework strictly aligned with UN standards, one that clearly defines terror offenses, preserves judicial oversight, protects peaceful dissent, and ensures equal protection under the law for all. (Colombo/October 22/2026)

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Sri Lanka’s Asia Asset Finance to raise Rs2bn in debenture sale

ECONOMYNEXT – Sri Lanka’s Asia Asset Finance plans to raise 2 billion rupees through the issuance of listed, rated, unsecured, senior, redeemable debentures.

20 million 5- year debentures will be offered at 100 rupees each, the company said in a market filing.

“The coupon frequency and the interest rates are to be decided closer to the finalization of the Trust Deed based on the market rates prevailing at that point in time.”

The company proposes to have the debentures listed on the Colombo Stock Exchange.

The issue is subject to regulatory approval. (Colombo/Oct22/2026)

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