SL Enters the global map as best travel destination Comments Off on SL Enters the global map as best travel destination 900

Sri Lanka with its unique blend of diverse culture, bio diversity and friendly people enters the global map as The Best Travel destination and retains its proud identity despite recent setback following 4/21 destruction of life and property. The Lonely Planet – the best-selling magazine featured Sri Lanka in 2019 – 10 years after a sustained upbeat in tourism nearly three decades after ending conflict in 2009.

Sri Lanka - Lonely PlanetThe country that was torn by war has entertained 2.4 million tourists by the end of 2018 benefiting nearly 300,000 direct and indirect employment and livelihoods,. A large number of them being small and medium entrepreneurs engaged in supply chain activities, investments in the development of leisure facilities, transport and logistics, urban and rural property development. This sector also accounted for USD 4.2 billion in foreign exchange earnings marginally lower than the country’s single largest industrial export income of USD 5.3 billion from textile and garment exports. In 2009, this now buoyant industry accounted for a mere USD 349 million.

The Lonely Planet ranked Sri Lanka as a top country to visit in 2019, stating “Already notable to intrepid travellers for its mix of religions and cultures, its timeless temples, its rich and accessible wildlife, its growing surf scene and its people who defy all odds by their welcome and friendliness after decades of civil conflict, this is a country revived.” The Lonely Planet recognises new highways and railroads help connecting critical areas of the country. It has also recognized that Sri Lanka’s tourism industry is developing properties around the island with more international hospitality brands.

Tourist interest in beaches are expanding to places like Tangalle, and going beyond popular places like Unawatuna and Weligama. Another attraction highlighted in the best-selling Lonely Planet Magazine is the train between Nanuoya and Ella passing through the hill country area beautified with the lavishness of tea plantation and natural environment. The ancient ruins of Anuradhapura with a wider attraction to the sacred Ruwanweliseya Stupa built in 140BC during which time Buddhism had flourished to its peak. The country’s history is enriched with leaders so devoted to empowering the island by Buddhist philosophy and culture with massive stupas and temples.

Lonely-Planet--02Economically the culture was supported by agriculture with amazing engineering talents to create its agricultural infrastructure with tanks and canals. The Sacred Temple of the Tooth is the holy place protecting the Tooth Relic of Load Buddha which is another attraction for visiting tourists. Both Anuradhapura and Kandy are two of the most holy places visited by many Sri Lankans as well. Showcasing the cultural extravaganzas every August the Trustees of Tooth of the Temple of the Tooth hold the Kandy Essla Perahera. Peradeniya Botanical Garden – the largest and oldest botanical garden in the country introduces the glamour to make Kandy which has been around for several 100 years as a tourist city.

The Eastern Tourism corridor spanning from Yala to Kuchchaveli through Pasikuda and Arugam bay is well known for the best waves in Sri Lanka. Surfing enthusiasts enjoy this area from April to October.

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Sri Lanka in a Transforming South Asian Economic Landscape (Data as at 2018) 0 1038

SL in Transform

 

  • India remains the Global leader and among the fastest growing economies of the world with a population of 1,316 Mn and USD 2,689 Mn.
  • Bangladesh with 162 Mn people with a GDP of USD 286 Bn has also sustained high economic growth in recent times.
  • Pakistan With a population of 199 Mn people and economy of USD 306.0 Bn GDP has slowed down its growth momentum, but remains a potentially important player in the region.
  • Nepal with a population of 29 Mn and an economy of USD 28 Bn sustains 6 percent growth in GDP in its transition to a lower middle income country.
  • Bhutan and Maldives with smaller in terms of population as well as GDP sustain near 7 percent growth in their respective GDP. Maldives commands the highest per capita income status in South Asia  while Bhutan commands one of the happiest country in the world,
  • Sri Lanka with 21 Mn people and a GDP of USD 92 Bn have lost its growth momentum and its development drive in recent years although it is still commanding the highest per capita income of around USD 4,000 in South Asia next only to Maldives.
  • Afghanistan with 30 Mn population remains as one of the poorest economies in the world with 2.5 percent growth in GDP and South Asia.   

 

Source : IMF – World Economic Outlook 2018 and Country Economic Updates
Source : IMF – World Economic Outlook 2018 and Country Economic Updates

By: BiZnomics Special Economic Correspondent

Property and Construction Industry 0 653

By : Kenneth De Zilwa

The country key drive has been the construction industry which accounts for 7pct of GDP. The housing sector also absorbs circa 23pct of the banking sector credit. The quarterly data indicates that the sector contracted by 5pct. A proxy for the industry is the core raw material, namely cement, during the period under review the total cement supply has decreased by 3.55 pct. during the first quarter of 2018. The total imports of cement and the domestic supply of cement has dropped by 3.16 pct. and 4.22 pct. respectively in the first quarter of 2018.

Central-Bank-Business-Conditipon

The overall segment of property seems to be depressed with many property developers and engineering, construction companies grappling with fiscal policy squeeze  as result of the increase in corporate tax, turnover tax and other taxes (WHT, NBT) which has resulted in an effective tax rate of 67pct vs 21pct in 2014. The situation is further compounded with higher balance sheet debt and the rising cost of production due to the YTD rupee depreciation of 5.9pct

Greater-Colombo-Housing-Approvals-Index

The depressed undertone in the construction industry is reflected the published Central Bank business survey together with the Greater Colombo Housing and Apartment Index. 2019 too does not seem to offer much sparkle to the sector with higher real interest rates and contraction in credit.