Financial sector slow to grant state tourism relief

With only four banks making good progress on the relief package granted by the government to the tourism industry, some at the peripherals seem to have been left out in the process even as other financial institutions are yet to fall in line.

During a media briefing in Colombo on Thursday, Economic Reforms and Public Distribution Minister Dr. Harsha De Silva stated that they have already made “satisfactory progress” on the matter and noted that as of May 31 there were 1055 applications made by borrowers and a total outstanding of Rs. 62 billion in total exposure from the tourism sector.

The minister stated that the moratoriums granted could not have an impact on the NPLs of the banks since the loans if not granted a moratorium would fall into the NPL and that will not be good for the banks.

The VAT issues have been rectified to ensure that the benefits of the VAT refunds inputs could be obtained by the industry, the minister said.

Chauffeur guide lecturers comprising 300,000 registered persons stated that their concerns have not been met as their cases were not taken up by their respective bank and financial institutions that was affecting livelihoods of one million people.

Tourism Development Minister John Amaratunga said that while the state banks had fallen in line and were providing relief to the tourism industry some of the private sector banks and leasing companies were yet to do so.

Private banks had minor problems which was the main reason for the delay but now they too have provided relief to their customers in the tourism industry, it was noted.

However, the leasing institutions had not yet resolved this issue as some even stated that they were yet to receive the circular from the Central Bank.

Two months since the Easter bombings the tourism industry continues to reel from the after effects of the attacks as tourists are slow to arrive in the country following a number of travel advisories against Sri Lanka.

“A few more banks need to be told they need to honour the government decision to help provide relief to the tourism industry,” Mr. Amaratunga said.

A few more banks need to be told they need to honour the government decision to help provide relief to the tourism industry