Govt. extends Embarkation Levy exemption for Jaffna International Airport

Monday, 31 July 2023 00:00 - - {{hitsCtrl.values.hits}}

Cabinet Co-Spokesman and Minister Bandula Gunawardena says tax exemption by another 6 months will promote affordable air travel for passengers and airlines

In a bid to promote the Jaffna International Airport and facilitate affordable air travel, the Cabinet of Ministers at its meeting last week approved an extension of the Embarkation Levy exemption.

Initially granted for six months starting from 19 December 2022, the exemption allowed international airlines operating at the airport to pay only 50% of the usual Embarkation Levy. As the initial period ended on 11 July 2023, the Cabinet of Ministers approved the proposal presented by Ports, Shipping, and Aviation Minister Nimal Siripala de Silva to extend the exemption for another six months.

“The decision to extend the Embarkation Levy exemption aims to maintain affordable airfare rates for passengers using Jaffna International Airport. By charging only 50% of the Embarkation Levy, airlines can offer air tickets at more accessible prices, making travel to and from Jaffna more affordable and convenient,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing.

Jaffna International Airport has emerged as a vital gateway, connecting the Northern Province of Sri Lanka with international destinations. “By reducing the financial burden on airlines operating at the airport, the Government aims to attract more international carriers and increase passenger traffic, thereby stimulating tourism, trade, and investment in Jaffna and overall economic activities,” he added.

Gunawardena said although the Government is losing income via Embarkation Levy exemption, the decision has more economic benefits by providing airlines and passengers with affordable airfare options and overall economic development via tourism earnings with foreign exchange.