Think tank...

The government’s own Tourism Strategic Plan 20172020 (TSP) which was released this August confirmed that most of the reporting done by Mirror Business over the last two years on the lack of research and the limits it places on developing the tourism industry.

While the government is being criticized for poor research, private sector businesses too are lagging behind in analyzing data they have collected through their clients, since at the recent Cinnamon Future of Tourism Summit, the country’s largest leisure and tourism operator, Cinnamon, admitted that it is only now starting data analytics.

Meanwhile, IPS Research Economist Kanchana Wickramasinghe said that lack of data is also a problem in measuring sustainability aspects of tourism in Sri Lanka, such as carrying capacity and the limits of acceptable change.

“These are essential parameters for planning sustainable tourism. Sri Lanka needs more improvements in this area. There are signs of negative repercussions that also need to be studied further,” she said.

Kiriella recently confirmed that foreign expertise will be provided to Sri Lanka to perform a carrying capacity study this year.

Meanwhile, Ellepola called for the establishment of a research unit for tourism, strengthen the tourism information management system and to publish research regularly for effective marketing campaigns.

She also said that transparent and effective communication is required among the coordinating agencies, central and district governments and the private sector to enhance Sri Lanka’s tourism industry.

The Sri Lanka Tourism Promotion Bureau over the years has continuously evaded calls to furnish statistics on its marketing efforts, which the TSP this year said had low returns on investment. The TSP has provided an adequate framework for the future based on research, analytics and proper marketing to harness niche tourism opportunities in the country and increase tourism revenue, although tourism personalities had said that execution has always been the weak spot of the government.

Although Sri Lanka’s annual tourism arrivals have grown from half a million tourists to just over two million since 2009, the growth has continuously declined, and is now a trickle, with a year-on-year growth of 2.5 percent for the first 11 months of 2017.

Eran Wickramaratne took on the State Finance Minister post.

Fiscal operations have been published only in May and July since then.

Under Regulation 20 of the Extraordinary Gazette No. 2004/66 which sets out the regulations pertaining to the Right to Information Act, government budgets, including actual income and expenditure, are required to be proactively disclosed by government authorities.

However, other publications, such as the Mid Year Fiscal Position and the Fiscal Management reports have been duly published.

All the proceeds of the port lease are expected to be received by mid next year.

Moody’s Investors Service in a recent report said the proceeds of the port lease will boost Sri Lanka’s foreign currency reserves by US $ 1 billion by mid 2018 to reach US $ 7.5 billion.

Since 2010, ADB’S microfinance programme has supported US $622 million in new loans, and an additional US $327 million in co-financing. The programme has worked with 27 MFIS and operates in India, Bangladesh, and Indonesia.

Among the 3.49 million borrowers served by the programme, more than 90 percent have been women and predominantly in rural areas. Standard Chartered Bank and Citi as well as IFMR Capital, Indusind Bank, Kotak Mahindra Bank, and RBL Bank are backers of the program in the risk participation structure. With additional funding, the programme will also expand its scope, allowing the programme to guarantee or risk-participate directly with MFIS or as part of a financial institution’s overall microfinance portfolio.

The programme will also be able to partially guarantee bonds and securitization transactions issued by MFIS, thereby enabling greater access by MFIS to capital markets and broadening diversification of funding sources. In addition, tenor on ADB guarantees will increase to up to 5 years. Combined, these changes will offer the programme’s partners greater flexibility and encourage a broader range of financial institutions to participate in the programme.