Sri Lanka Roundup: Low power prices, $1 billion investment, tourism
Tourism boost
In early 2024, Sri Lanka welcomed nearly 200,000 Indian tourists, with a focus on showcasing its diverse attractions and strengthening ties with India. The country aims to attract 2.5 million tourists in 2024, with a significant focus on MICE tourism. Tourism revenues exceeded USD 2 billion in 2023 and over USD 1.25 billion in the first four months of 2024. Sri Lanka is also emphasising visa-free entry for Indian travellers and aims to increase the MICE sector's share of total tourist arrivals, as reported by TravelBiz Monitor.
$1 billion investments
Sri Lanka has secured 35 investment agreements this year, according to State Minister of Investment Promotion Dilum Amunugama. The Ministry of Investment Promotion has achieved its goal of attracting investments totalling USD 1 billion, as set by the Ministry of Finance, the Minister announced. Amunugama made these remarks during the inauguration of the second and third phases of the Bingiriya Export Processing Zone. Newswire highlights that following President Ranil Wickremesinghe's directives, the Ministry is now exploring the development of new investment zones in Iranavila, Mankulam, and Kankasanthuari, he added.
Reduction in bilateral engagements
The government has decided to limit its bilateral engagements, including hosting foreign leaders, except for Indian Prime Minister Narendra Modi, in the coming months due to the presidential elections, according to Daily Mirror. The focus will be entirely on the elections. Visits from leaders of countries such as the United Arab Emirates and the Maldives have been postponed due to time constraints for President Ranil Wickremesinghe. However, Prime Minister Modi is expected to visit Sri Lanka before the elections, although the dates have not been officially confirmed. The Election Commission is expected to issue the election notice on either July 30 or 31, Daily Mirror reports.
Ex-president Sirisena to complete compensation payments
Sri Lanka's Supreme Court has ordered former President Sirisena to complete compensation payments to the victims of the 2019 Easter terror attacks before August 30. The court previously ruled that Sirisena and others failed to prevent the attacks and ordered them to pay compensation. Sirisena has paid Rs. 58 million ($191,625) out of the ordered Rs. 100 million ($330,388) and requested six years to pay the remaining amount. The deadline was originally set for July 12, 2023, Hindustan Times reports.
Sri Lanka to cut power prices
Sri Lanka has implemented a 22.5% reduction in power prices to ease financial strain on its citizens amid a severe economic crisis. This decision comes after previous price hikes to meet IMF bailout conditions. The reduction aims to aid economic recovery and provide relief to consumers, while also helping the country maintain its inflation target of 5%. According to Gulf Today, this move is part of broader fiscal reforms mandated by the IMF to stabilise the economy.
