Sri Lanka is still struggling to attract crucial investments to the tourism sector, as a result of which the authorities eye the diaspora and local traffic to add to the numbers. It is no easy task to get investors to Sri Lanka under the current circumstances, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando [...]

Business Times

Investments hard to come by for Sri Lanka Tourism

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Sri Lanka is still struggling to attract crucial investments to the tourism sector, as a result of which the authorities eye the diaspora and local traffic to add to the numbers.

It is no easy task to get investors to Sri Lanka under the current circumstances, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando said at the media briefing held in Colombo on Thursday.

He noted that investors need to ensure if there would be a Return on Investment and incentives offered to establish their operations in Sri Lanka.

When calling for investments to locations like Kalpitiya and Kuchchaveli it was pointed out the initial investment for capital is “quite high” as the required infrastructure may not be in place.

As a result authorities are now looking at attracting more travellers from the Sri Lankan diaspora and locals themselves to increase the stays at hotels. As part of the exercise authorities want to identify Jaffna as a MICE destination with direct connectivity.

“Some hotels were charging ridiculously low rates,” he said adding that the quality standards will be positioned according to the price. In this respect, the Minimum Room Rates will be gazetted shortly and will become effective from October 1.

In the meantime the government came out with a one and a half page statement on the recently spotlighted fraud relating to the Public Relations tender and the subsequent halting of awarding it and the halting of the Digital Marketing tender.

Tourism Minister Harin Fernando said there is an inquiry going on into the matter and that “my job is not getting involved in day-to-day tender matters”. However, he said that if the allegation was a serious it would have to be handled by the CID.

Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Chalaka Gajabahu told the Business Times on the sidelines of the media briefing that the fraud came to light as he had detected it first and identified something as it was taking time. Later he had informed the Minister and the Secretary regarding this matter as a result of which it came to light.

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