Cabinet nod to extend loan moratorium granted to tourism industry

The Cabinet nod has been granted to extend the moratorium given to the crisis-hit tourism industry until December 31 of this year after evaluating industry pleas.

Tourism Minister Harin Fernando on Monday sought the approval of the Cabinet of Ministers to instruct the Central Bank to take necessary steps to extend the moratorium given to the tourism industry.

According to Cabinet Co-Spokesperson and Minister of Labour and Foreign Employment Manusha Nanayakkara, the moratorium granted by private sector banks on loans taken by tourism industry expired on March 31, and the moratorium granted by State banks on tourism industry loans will expire 
on June 30.

Sri Lanka Association of Inbound Tour Operators (SLAITO) and The Hotels Association of Sri Lanka (THASL) had already requested for an extension to the moratorium. Interest waivers and a debt restructuring programme have also been proposed.

As of now, the loan moratorium given to the tourism industry has surpassed Rs.500 billion, significantly up from Rs.200 billion in 2020. 

With the current economic and political crises in the country and the effects of the Ukraine-Russia war, Sri Lanka’s tourism industry has yet again entered a crisis period.