Tuesday, 15th June 2021

Easter bombing affect: Revenue loss from VAT and NBT alone at Rs. 26 bn – Report

Colombo, Jun 4 (BAN/CD): The Central Bank of Sri Lanka(CSBL) has put the revenue loss from VAT and NBT alone at Rs 26 billion in an assessment of the damage caused to the economy as a result of the Easter Sunday attacks, for the remaining period of the year.

The CSBL said tourism, which softened the blow of the negative impact of the trade deficit of the balance of payment, would be hit hard.

An internal, classified document, which the Daily Mirror has been privy to reports that tourist arrivals have been greatly reducing while departures are increasing. Sri Lankan tourism was at a crucial point of its evolution just before the attacks took place. The potential of the tourism sector to grow to be a vibrant and sustainable industry that contributes to the GDP while creating long-lasting career opportunities will be severely affected,” the report said.

In order to stifle the negative impact, CSBL has advised the government to take apt measures while normalizing the situation and mitigating security risks as well as strengthen intelligence services.

Sri Lanka should be re-established as a peaceful country or a destination to invest and do business through image and re-building. This can be achieved by conducting promotional programmes to attract backpackers and introduce special packages for tourists, the CSBL added. Possible measures should be introduced to expedite economic activities and take additional measures to safeguard government revenue and impose an expenditure cut from capital expenditure.

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