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Economy

Sri Lankan debt repayment period to be extended from 2028 to 2042, with a lowered interest rate of around 2-pct

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Sri Lanka is close to finalizing talks with its lenders, led by Japan, to halt debt payments until 2028.

The repayment timeline is set to be prolonged from 2028 to 2042, with a reduced interest rate of around 2%. While Sri Lanka has requested more debt relief, Nikkei Asia states that there are no plans for further reductions.

China, as the main lender, is involved as an observer. Nevertheless, its debt restructuring terms are likely to match those established with other lenders.

Economy

Sri Lanka opens path to export wheat bran to China

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Sri Lanka’s cabinet has approved the signing of an agreement with China to allow exports of wheat bran pellets, spokesman Minister Bandula Gunawardana said.

Sri Lanka’s wheat mills produce bran as a by product which can be made into pellets and exported to China.

The agreement sets out the protocol to be followed in the export of wheat bran pellets from Sri Lanka to China.

“When processing wheat flour, 20 percent of the bran is removed from the imported wheat seeds,”Gunawardana told reporters. 

“We could earn foreign exchange by exporting the bran to China as pellets.” 

The agreement will be signed between the Sri Lanka’s Ministry of Agriculture and Plantation Industries and the General Administration of the Customs of the People’s Republic of China.

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Economy

Tourism industry hit by immigration delays and inefficiencies

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Sri Lanka’s tourism industry is facing severe setbacks due to prolonged delays and inefficiencies at the country’s main airport, Bandaranaike International Airport (BIA).

Reports of long-queues, slow moving lines for visa on arrival, and indifferent service by immigration officers have marred the experience for tourists and returning Sri Lankans alike, resulting in a significant drop in daily arrivals and substantial economic impact. 

According to the Sri Lanka Tourism Development Authority (SLTDA), daily arrivals have dropped drastically from around 6,000 visitors to 2,000 since 18 August. 

Industry feedback suggests that the country may have lost around 40,000 potential tourists in August alone, reflecting an estimated economic loss of $ 120 million.

Despite these alarming figures, there has been little response from the authorities responsible for immigration. 

“We have repeatedly been trying to engage with the Department of Immigration and Emigration Controller General for over a week without success,” a top official of Sri Lanka Tourism told the Daily FT.

He said that Sri Lanka Tourism has been lobbying alongside the Tourism Ministry to address these issues, including the simple step of increasing the number of counters for on-arrival visas. Yet, these efforts have been met with silence.

The situation has sparked criticism from industry stakeholders and travellers. Complaints highlight the stark contrast between the warm welcome Sri Lanka promises and the cold, apathetic reality encountered at its main airport.

These issues have raised concerns about the commitment of immigration services to supporting the tourism industry, a vital foreign exchange generating industry to the economy.

Industry stakeholders claimed that the silence from officials and the lack of concrete actions to improve the situation only add to the frustration.

“The inefficiencies at the BIA are not only deterring tourists, but also tarnishing the image of Sri Lanka as a welcoming destination. Immediate reforms are crucial to streamline the visa, immigration process to show a genuine commitment to reviving the tourism industry,” industry stakeholders pointed out. 

Source – DailyFT

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Economy

For the first time ever, India is exporting cars to Japan.

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Maruti Suzuki India has achieved a significant milestone by exporting over 1,600 units of its newly launched sports utility vehicle (SUV), the Fronx, to Japan. This marks the first time an Indian-made SUV has been exported to the Japanese market, highlighting the growing global presence of ‘Brand India.’

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