Govt. gives 3-month rent relief to BIA shops, service providers

Tuesday, 19 May 2020 00:25 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

The Government has decided to waive off three months of rent of all duty free shops and service providers at Bandaranaike International Airport due to closure on account of the COVID-19 pandemic.

The move follows discussions during a meeting last week between Tourism and Aviation Minister Prasanna Ranatunga and the vendors and service establishments at BIA.

The duty free shops and service establishments such as operators at air cargo village, telecommunication providers, hotel and travel services counters at the departure and arrival terminals will be free of rent for a period of three months from 19 March.

Further, airline operators leased out with spaces at the BIA will also be free of charge for a period of three months from April. It has been decided to charge 50% of the monthly rental from airport cargo facilities for three months from April.

In addition, leases of private aircraft operators having lease agreements at Ratmalana Airport have been waived off for three months effective 19 March.

“We have decided to provide a one year extension for all electrical and electronic household applications operators in the arrival duty free complex at BIA since their current agreements are expiring in June,” the Minister told Daily FT.

He said for hotel, mobile communication and travel services counters, the three months’ rental waive off effective from 19 March was subject to settlement of outstanding due payments up to February in respect of hotel and mobile communication operators, while in respect of travel counter operators, it was subject to reduction of outstanding value up to February to be not less than that of one month’s applicable rental charge.

In addition, the Minister said that the monthly vehicle charge would be limited only to the actual number of vehicles registered with Airport and Aviation Services (Sri Lanka) Ltd. during the above period for travel operators.

“The concessions are subject to settlement of all outstanding payments relevant to agreements up to March and in some cases February. The concession fee will be limited only to actual turnover during the three-month period,” Ranatunga said.

The Minister said a further period of concession would be subject to review, with one-year extension, since current agreements were expiring in May/June 2020.

“Although the BIA is all set to commence operations, it will take some time for tourism and aviation sectors to recover,” he added.

The economic impact of the decision is yet to be assessed, Ranatunga said.