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Govt. to negotiate 18% VAT imposed on DMCs with IMF

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Sri Lanka to be positioned as marine destination

Local domestic air transportation network on the cards

The government will negotiate with the IMF to provide a concession to Destination Management Companies (DMCs) over the 18% VAT levied on them, Tourism and Sports Minister Harin Fernando told the media yesterday at a press conference held in Colombo. He opined that an 18% VAT on DMCs will have an adverse effect on the tourism industry because tourists have made advanced booking until October.

He said they plan to introduce sports tourism and especially promote high-end golf tourism and a huge emphasis will also be placed on water sports and their main target will be to position Sri Lanka as a marine destination this year. Sri Lanka is surrounded with water and there are an abundance of rivers and streams in the country and questioned why the most is not made of these natural resources. Fernando said if a speed boat service was started it would only take an hour to travel from Kalpitiya to Port City by sea. He said there should be plenty of boats sailing in Lanka’s waters. There should also be surfing and diving taking place in these waters. The Minister said he has requested the President to arrange for rebates for water sport equipment and measures would also be taken to protect the sea. He said there were almost 100 casualties annually in the Negombo sea itself and if an artificial coral reef could be set up this could be avoided.

The Minister said today New York Times has placed Negombo as the best 16th destination to travel and they plan to introduce several new places to travel in Sri Lanka in addition to the traditional tourism hot spots and rally the tourism industry around these new locations. He said they target 2.3 million tourists in 2024 and Indian based ITC Hotel in Colombo will open in February 2024 wherein Colombo is the only destination outside India for that brand to open a hotel and many more famed brands like Sheraton, Intercontinental will open in Sri Lanka soon. He said a host of high end villas too will open and already such a villa sells for USD 14,000 per night.

The Tourism Minister said their biggest target is to set up a local domestic air transportation network this year flying scheduled flights to China Bay, Higurakgoda and Batticaloa for a fare around USD 50-60.

They also plan to improve and initiate more ferry services. He said there are over 143 ships in the seabed of Sri Lanka and would introduce deep sea diving and deep sea fishing and would import the necessary equipment for that purpose in 2024.

Fernando also said they also expect to bring in several events like marathons and individuals like singer Andrea Bocelli and conduct a large number of concerts.

He said they will also look for new destinations and put a huge weight on Australia. Only Sri Lankan flies to Australia and they would negotiate with low cost airlines like Batik Air, Air Asia to bring in tourists from Australia.

“May to August is the low season in Sri Lanka but for Australia and New Zealand it is the high season and Sri Lanka must make the most of this to bring in tourists from that part of the world.”

Plans were also mooted to promote wellness tourism particularly to countries like Japan and Korea who are high spenders. The President has also made a blueprint to create an entertainment strip merging the President’s House and adjoining Navy building and develop a promenade on the land adjoining the Lotus Tower where there are several warehouses has also been planned. Also they plan to put up a giant fountain in front of the Cinnamon Life by May which will comprise live music and entertainment, he added.

The post Govt. to negotiate 18% VAT imposed on DMCs with IMF appeared first on DailyNews.

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