The relief package with a moratorium on repayment of loans and more financial assistance for the revival of the tourism industry badly hit by the Easter terror attacks is now on full swing covering all tourism sector institutions and service providers on case-by-case basis.
Deputy Treasury Secretary A.M.P.M.B. Atapattu divulged that the moratorium period will be on until 31st March 2020 for both capital and interest payments granted to the tourism sector as of 18th April 2019.
The tourism sector relief packages will be offering working capital loans up to LKR 250 million, based on turnover, he said.
The government would bear 75 percent of the interest component, until March 31, 2020, to offer a 3.4 percent concessionary interest rate for the grappling tourism sector subject to two-year maximum tenure.
A loan scheme for informal tourism sector including many small scale hotels, service providers and inns are eligible for an interest free loan of up to LKR 500,000 taking into consideration effect of the Easter Sunday attacks.
The interest-free loan is expected to be repaid in three years with a grace period of 12 months.
Releasing an explanatory note on concessions granted to tourism industry, Central Bank announced wide range of concessions granted to all tourism industry service providers.
Persons and entities providing tourism sector services which have not been registered with relevant authorities are required to register with the Sri Lanka Tourism Development Authority (SLTDA) to prove their eligibility for the relief package.
State Minister for Tourism Eran Wickramaratne said that VAT will be reduced from 15 to 5 percent on hotels and tour operators registered with SLTDA from 1st April 2019 to 31st March 2020.
Tourism loans registered on or before 18th April 2019 but will be granted before 31st March 2020 under "Enterprise Sri Lanka" credit schemes introduced by Finance Minister Mangala Samaraweera, with the interest subsidy being borne by the government to continue from the granted date, he disclosed.
Under the Enterprise Sri Lanka loan schemes, an allocation of LKR 1.514 billion has been made for providing relief for the tourism sector loans.
1,055 applications for loan facilities have been received by banks as at May 31. The tourism exposure to banks is around LKR 62 billion where LKR 26 billion has been considered for moratorium, Central Bank data showed.
The tourism sector can obtain fresh working capital under the Enterprise Sri Lanka programme with a repayment period of 2 years with 75 per cent of the interest subsidy borne by the government from the effective interest rate until 31st March 2020.
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