• Tourism Minister Harin Fernando says Central Bank green lights to release funds to partly settle due payments for airlines
• Outlines plans to introduce new landing rates, 6-months free landing at Jaffna and Mattala for charter flights
• Confirms Jaffna International Airport in Palaly will be operational from 12 Dec.
• Asserts all airlines receive adequate fuel supply with no disruptions expects situation to continue

 By Charumini de Silva

Sri Lanka is stepping up its efforts to overcome the rising concerns on costs of landing as well as settling the due payments for the airlines amidst the foreign exchange crisis, to boost connectivity and attractiveness as a top holiday destination.

“This is one of the key issues we are trying to overcome. We are trying to arrange a new rate for landing and the Central Bank has given a certain percentage to be released from the outstanding amounts, which I believe is a good start,” Tourism Minister Harin Fernando told the Daily FT.

Airlines operating in Sri Lanka need to be paid over $ 150 million in dues as a result of the ongoing foreign exchange crisis, resulting in most carriers limiting or having withdrawn their flights from Colombo. 

Over the past several months, payments for cargo and passenger travels have accumulated, as the country has not been able to carry out remittances in foreign currency through banks due to the dearth of foreign exchange, sources in the airline industry said. 

Against this backdrop, most of the general sales agents (GSAs) in Colombo were forced to bear the losses from the depreciating rupee as payments made when the build-up started were at the rate of Rs. 203 but now it is at Rs. 360 against the dollar.

“Airlines adopted different strategies to ensure they reduce transactions within Sri Lanka, via credit card transactions and online payments,” industry sources said.

Minister Fernando however expressed contentment with many airlines still calling and increasing their frequencies such as Emirates and Qatar Airways.

“Introduction of the new rate for landing charges will help the already operating airlines and draw new ones or resume airlines. We are also exploring introducing six months free landing at Jaffna International Airport in Palaly and for charter airlines operating to Mattala International Airport,” he added.

He also said Jaffna Airport is ready for operations from 12 December. 

As per the Civil Aviation Authority around 32 airlines are currently registered with the CAA, including 21 scheduled passenger carriers whilst more are likely to begin services to Colombo very soon.

Immediately after reopening borders post-pandemic, only eight international airlines and 15 charter carriers were operating in Sri Lanka. Thereafter, air traffic to Sri Lanka gradually rose with multiple international airlines operating in Colombo. Post-pandemic, a total of 37 international airlines operated in Sri Lanka. 

Minister Fernando said all aircraft receive adequate fuel supply as per their requirements. “There have been no disruptions so far and we expect the situation will continue to be so,” he added.

 

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