Sri Lanka rupee falls to Rs. 260 against US Dollar for the first time

The Central Bank of Sri Lanka announced that the selling price of one US dollar Thursday is close to 260 rupees and buying rate is Rs. 250 per US Dollar.

Following the Central Bank’s decision to free float the value of the rupee against US Dollar, the buying and selling prices of the US dollar against the rupee are rising rapidly. Accordingly the buying price of a dollar today is 249 rupees 96 cents and the selling price is 259 rupees 99 cents.

Several of Sri Lanka’s leading commercial banks today have set a selling price of 260 rupees for a US dollar and 250 rupees for buying a dollar.

However, the Central Bank recently allowing greater flexibility in the exchange rate said expected that forex transactions would take place at levels which are not more than Rs. 230 per US dollar.

SLFP will go solo at next elections : MP Nimal Siripala

Senior Vice President of the Sri Lanka Freedom Party Nimal Siripala de Silva states that the party will contest any upcoming election on its own.

Addressing the Colombo District Convention of the Sri Lanka Freedom Party, the MP stated that there was a discussion involving several professionals at the Central Committee of the Sri Lanka Freedom Party on its policies.

Accordingly, the MP stated, the SLFP central committee held discussions on the program which will be implemented if the party comes into power, solutions to the dollar crisis, solutions for the employment crisis, and solutions for the issues faced by the farming community.

Together with professionals and intellectuals, the SLFP prepared a 15-part document on this issue, he said.

“The Sri Lanka Freedom Party is not a party which initiates blind action. We, the Sri Lanka Freedom Party, will contest the next election alone. Do not have any doubts about that,” he added.

India gives US$500mn credit line, hopes to end fuel shortages

India has given effect to the a 500 million US dollar credit line using which Sri Lanka can import oil, as money printed to keep rates low, boosted imports to record levels, triggering forex shortages and made it difficult to import oil.

Sri Lanka can use the credit line to buy oil from India and also third countries, the Press Trust of India reported, following the approval of the Reserve Bank of India.

Sri Lanka has to buy 75 percent of the goods from Indian exporters and the balance from any other country.

The line of credit can be used for six months of signing the agreement and extended at the request of the borrower.

The Reserve Bank of India has said extension should not be more than 12 months, the report said.

Sri Lanka is in the habit of borrowing dollars to buy oil after money printing creates forex shortages.

State-run Ceylon Petroleum Corporation is indebted to the hilt due to past borrowings from banks to import oil.

Suppliers have now refused to give any more credit and are asking for upfront payment. Meanwhile some suppliers

The CPC has for many years got suppliers’ credit to buy oil and has ended up billion over 3 billion US dollars of loans despite market pricing oil.

It is not clear whether the 500 million dollar credit line would be used to subsidise oil, adding to the overall public debt burden.

Sri Lanka’s state economists have a habit of using borrowings and credit lines after printing money and then jumping up and crying wolf about a widening current account deficit.

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Sri Lanka rupee at 260/275 to dollar after opening at 240/260

Sri Lanka’s rupee opened at 240/260 and is quoted t 260/275 to the US dollars Thursday after the central bank re-confirmed there were no restrictions on trading, dealers said.

Amid the uncertainty quotes are wide.

A float of the currency helps match inflows to outflows and the central bank no longer has to give reserves as long as no more money is printed to sterilize the intervention.

The currency tends to fall steeply when a float starts and then stabilizes.

“We observe the banks are cautious and that is a good sign and their guidance to clients would also be helpful at this juncture,” Central Bank Governor Nivard Cabraal said.

“Our bankers are mature and responsible breed and we have confidence and that they too act in a responsible manner that would be fair to all stakeholders, importers exporters borrowers, lenders and expatriate workers.”

Sri Lanka allowed a float of the currency after reserves fell to low levels.

W A Wijewardene former Deputy Governor of the Central Bank said a rate hike will help support the rupee by reducing aggregate demand and imports and arbitrage opportunities.

Geneva bunker-buster, Rajapaksa regime retrenchment and 2015 reset BY DR Dayan Jayatilleka

For the first time in the history of the United Nations Human Rights Council and in all probability the history of the United Nations system, and for the first time in the long history of the Roman Catholic Church, a Cardinal addressed the UNHRC. It was also the first time in Lankan history that a top religious leader addressed a UN body and made a moral-ethical denunciation of ‘the incumbent government’.

Those who make justice unattainable nationally, render inevitable the call for justice internationally. Those who fail to follow the trail of guilt wherever it may lead, and are thought to kick over the traces of mass atrocities nationally, generate a powerful plea to switch on the searchlight of justice globally.

Church militant

His Eminence Cardinal Malcolm Ranjith who met the leader of the world’s 1.3 billion Catholics, Pope Francis, and doubtless obtained permission and blessing for his UNHRC move from His Holiness, had a 45-minute conversation in Spanish (one of the seven languages he has mastered) with United Nations Human Rights High Commissioner Michelle Bachelet, and addressed the UNHRC.

After years of forbearance, His Eminence took the stand of moral and ethical denunciation of an Old Testament prophet and called out for globalised justice. He dropped a thermobaric bomb on the regime bunker:

“…The first impression of this massacre was that it was purely the work of a few Islamic extremists. However, subsequent investigations indicate that this massacre was part of a grand political plot.

…Instead of uncovering the truth behind the attack and prosecuting those responsible, there are attempts to harass and intimidate those who clamour for justice.

…we earnestly call upon the UNHRC and all its member countries to support the continuation of evidence gathering initiated by the Council last year and to devise a means to ensure an investigation to unravel the truth behind the Easter Sunday massacre.”

The Cardinal’s speech reached the world.

Foreign Minister G.L. Peiris’ speech against the Sri Lanka Accountability Project was collateral damage. GoSL’s global South card lies shredded, not only by India’s sharp reminder about the 13th amendment but by the realities that Pope Francis and Cardinal Ranjith are from the global South and the global South contains the majority of the world’s Catholics (Latin America, the Philippines).

Catholic priests were being pressurised and lay activists harassed by the authorities. Ministers and top officials were supercilious and patronising. The regime’s puffed-up hardliners shouldn’t have strayed out of their strictly local league, picked a globalised target and started something they can’t possibly finish.

Militarisation-accountability nexus

The recent vote demonstrated the appetite of the UN Human Rights Council for an international inquiry into the Ukraine war so as to establish accountability for possible violations of international law. This mood is certainly going to impact the Sri Lankan case, concerning which the UN Human Rights High Commissioner has already called for “alternate strategies” to advance international accountability, arguing that military and ex-military personalities have been appointed to an unprecedented number of high places in the Sri Lankan state structure, thereby turning entrenched impunity, structural if not systemic, and negating the chances of domestic accountability.

Sri Lanka’s Foreign Minister Prof. G.L. Peiris made a strong critique of an international accountability mechanism on the grounds that it was polarising rather than therapeutic in its domestic effects. A valid point, but absent an essential component, it was akin to a stern warning about the dangers of COVID-19 while refraining from providing the vaccines. The only possible protection against international accountability is a robust national accountability mechanism as clearly set out by the Presidential Commissions appointed by President Mahinda Rajapaksa.

As High Commissioner Bachelet notes: “Two years after the expression of commitments to pursue an ‘inclusive, domestically designed and executed reconciliation and accountability process’ before this Council, the Government has still not produced a credible roadmap on transitional justice towards accountability and reconciliation.”

Nothing of the sort has been established and what is worse, a soldier who was found guilty by the Sri Lankan courts of slaughtering children in cold blood by cutting their throats, was set free by President Gotabaya himself and visited upon release by his erstwhile commanding officer, the current Secretary/Defence, Gen. Kamal Gunaratne.

The UN Human Rights High Commissioner paints the over-exposed target with a laser beam:

“…The militarisation of civilian government functions is further deepening. I remain deeply concerned by the concentration of civilian positions in the hands of military officials – some of them implicated in serious allegations of human rights violations…The current Government has not only demonstrated its unwillingness to pursue accountability – it has incorporated military officials implicated in alleged war crimes into the highest levels of Government, reinforcing a narrative of impunity. For these reasons, and to provide some form of redress for victims. I have called on the Council to pursue alternate strategies to advance accountability at the international level.”

The operative phrase here is “For these reasons”. Thus has President Gotabaya’s unwise practice of fertilising and seeding the state with his former comrades-in-arms (while de-fertilising the food-producing farmlands) actually made the Sri Lankan armed forces and the war, more rather than less of an international target.

High Commissioner Bachelet’s exact recommendation to the UNHRC and member states should be studied: “…to investigate and prosecute perpetrators of international crimes committed by all parties in Sri Lanka, through judicial proceedings in their jurisdictions, under accepted principles of extraterritorial or universal jurisdiction.”

If international accountability moves forward under the rubric of universal jurisdiction, non-compliance could culminate in unilateral sanctions.

Sources of post-war folly

When Sri Lanka won the post-war vote at the UNHRC decisively in May 2009, it had engaged in a trade-off: domestic devolution for external accountability. After my dismissal from Geneva, GoSL double-crossed our partners and unilaterally reneged on that arrangement—indeed my removal was symbol and signal of that U-turn.

The Geneva May 2009 trade-off formula was the cheapest price we would ever have to pay. Just two things to do, neither of which were done. Now the chickens are well and truly coming home to roost.

One of those two things was to implement the 13th amendment—an issue that was flagged in India’s speech at the UNHRC last week. Coincidentally, Sri Lanka’s Ambassador/PR in Geneva, an ideologue of the GR project was a long-standing polemicist against the implementation of the 13th amendment and advocate of its post-war abolition.

Indian Ambassador/PR Pandey’s statement in Geneva at the on-going UNHRC session unambiguously reminded GoSL of the issue:

“…As its friend and immediate neighbour, India has consistently called upon Sri Lanka to fulfil its commitments on addressing the issues related to protecting the interest of Tamils in Sri Lanka. India believes that it is in Sri Lanka’s own interest that the expectations of Tamils in Sri Lanka for equality, justice, peace and dignity, within a united Sri Lanka, are fulfilled. This applies equally to the commitments made by the Sri Lankan Government on meaningful devolution, including through the 13th Amendment to the Sri Lankan constitution.

…We call upon Sri Lanka to take the necessary steps to address the legitimate aspirations of the Tamil community, including by carrying forward the process of reconciliation and the implementation of the Thirteenth Amendment to the Constitution of Sri Lanka, to ensure that the fundamental freedoms and human rights of all its citizens are fully protected.

We will continue to urge the Sri Lankan Government for the early conduct of elections to the Provincial Councils in keeping with its commitment to devolution of power.”

The other issue was a robust domestic accountability mechanism and process on emblematic cases. That too remains undone.

There was a third post-war task, and that was not part of the UNHRC Geneva process. It was to accept the deal on the table in the form of the Kerry-Lugar Report of the US Senate Foreign Relations Committee in late 2009, which listed just these two issues i.e., devolution and accountability. This would have normalised relations with the US, but it was ignored. Post-war Sinhala state nationalism assumed it was a seller’s market.

Unresponsiveness to the Kerry-Lugar report was not Prof. G.L. Peiris’ folly (we were both in Vietnam with President Mahinda Rajapaksa when the report came out). Where Prof. Peiris blundered was when he declined (to President MR’s dismay) US Secretary of State Hillary Clinton’s invitation for a discussion in Washington DC somewhere in 2011-2012.

The clock is ticking on the EU’s decision on GSP+. Sri Lanka’s National Human Rights Commission headed by a retired Supreme Court judge appointed by President Gotabaya Rajapaksa, has made strictures and recommendations on the PTA which the Sri Lankan government is ignoring despite the danger of losing GSP+.

President Gotabaya Rajapaksa and his myopic uber-nationalist hawks such as Minister Weerasekara (and Ven. Dr. Medagoda Abeytissa) now have to decide whether it is a worthwhile risk to continue their policy of filibustering on the 13th amendment—which I had warned against publicly in 2017-2018—in the face of the current convergence of circumstances:

(a) Forex bankruptcy and Minister Basil Rajapaksa’s impending visit to Delhi with a begging-bowl

(b) The tightening noose of international accountability, and

(c) The recently reiterated Indian insistence on devolution, the 13th amendment and the early holding of Provincial Council elections.

Sri Lanka would have continued to have India’s support, neutralised the USA’s hostility and enjoyed the unstinted backing of China, Russia and the global South, if GR and BR hadn’t taken turns in blocking MR’s wartime and immediate post-war international commitments on devolution and limited accountability.

MR allowed his wartime commitments to a post-war roadmap, manifested in his May 21st and 23rd joint communiques with India and the UNS-G, and the UNHRC Geneva May 27th 2009 Resolution, to be ripped apart by his siblings, who imposed their respective blueprints instead.

This is not merely a matter of external relations but also of economics. Sri Lanka would have had capital inflows from China, India, Japan and the West, avoiding the deep economic crisis we now find ourselves in. Post-war, Sri Lanka could have had it all. So could the Rajapaksas.

MR’s brothers were positioning themselves or were being flatteringly positioned by their respective fan-clubs (“Gota’s War” 2012), for post-MR succession. With secession defeated, succession moved to the top of the agenda. The state bureaucracy and state apparatus as a whole was carved up between GR and BR into spheres of influence. Ministers and top officials felt the need to take the cue from one or the other brother or operate in the zone between the two, rather than take the line from MR.

Head for an off-ramp
Succession has never been less meaningful than today. Succession to what? The captaincy of the Titanic? It is doubtful that the Rajapaksas could retain even the Ruhuna at a national election. The clan brand has become toxic. Once this Titanic sinks, it will take Namal longer to resurface it than it might take Dullas Alahapperuma, but as in the case of the Bandaranaikes and the Nehru-Gandhi dynasty, the Rajapaksas would rather the party be defeated than relinquish their death-grip on it. It will take over a decade for the electorate to forgive and forget the economic trauma inflicted by the Rajapaksas. After the fate of Wimal and Udaya, no one will come forward to defend them as the duo did.

Thanks to the policies of President Gotabaya Rajapaksa, which recently made the pages of one of the most prestigious international periodicals– though hardly positively—there is rage in the rural heartland. (Sri Lanka’s Organic Farming Experiment Went Catastrophically Wrong (foreignpolicy.com)

Things are reaching boiling point. One reason is debt repayment. Without a plan for “sensible restructuring” (Yanis Varoufakis’ phrase), the government will be left with a ‘Prisoner’s Dilemma’ in June: default, or pay up and risk bankruptcy, triggering a tsunami of social unrest. Dr. Nishan de Mel’s question is the crux of the matter: “if you make the repayment on schedule what are you going to be left with to pay for essentials?”

The only realistic strategy for the ruling clan is not one of winning elections or remaining in power without elections, but a survival strategy of a double-exit.

Firstly, exit from the economic downward spiral, because if the economy crashes, the ruled will come looking for the rulers and the military won’t be able to stop them because it will itself split.

Given that China (a) instituted the greatest economic miracle in the history of economic development (b) is a close friend of Sri Lanka and (c) cannot be accused of being an imperialist Western power, President Gotabaya Rajapaksa should immediately request President Xi Jinping to send a team of top economic experts to help us evade the coming economic catastrophe.

Ceylon/Sri Lanka had a history of seeking top-notch foreign expertise on matters of economic policy. No less a nationalist than Prime Minister SWRD Bandaranaike brought in Nicholas Kaldor and Joan Robinson. No less self-confident a leader than JR Jayewardene asked Lee Kuan Yew to send him an economic wizard and Lee sent Goh Keng Swee.

Significantly, President GR hasn’t named to his National Economic Council, Dr. Nalaka Godahewa who delivered the key presentation on economic development at the Shangri-La Viyath Maga-2 (2018).

I wouldn’t trust any National Economic Council under any administration, that doesn’t have Nishan de Mel and Dushni Weerakoon (discrepant as their current views are) as lead economists.

Secondly, an early election –which takes a legislative amendment through Parliament—and a peaceful transfer of power, is better than the alternative.

The ruling clan is playing for time in the hope of a turnaround. Why play for time when time is working against you? As the sovereign citizenry finds everyday life unliveable, it will sooner rather than later, make the place ungovernable by the rulers. Or is that the plan?

SLFP: Necessary ally

The 2015 Rajapaksa replacement strategy had three sources and components:

(i) Chandrika Bandaranaike Kumaratunga’s notion dating back to late 2005 of a bi-partisan government comprising Ranil’s UNP and the SLFP (she didn’t expect Mahinda to win), for a federal Constitution. CBK failed to foresee the genetically-encoded blowback of the vote base of her own party, the SLFP, against the West-centric neoliberalism of the Ranil-Mangala UNP.

(ii) Mangala Samaraweera’s formula of a majority of the minorities plus a minority of the majority.

(iii) Senior ambassadors and their experts who were probing for a fissure; an improvement on the SF option of 2010.

The sole rational element of the 2015 strategy was component (iii), the ‘Sison-Honigstein’ postulate: the Rajapaksa vote needed to be politically ‘hacked’ by a dissident, moderate-nationalist SLFP faction.

Today’s economically antagonised SLPP voter has left the Medamulana manor but may not move all the way over to the SJB or JVP-NPP, and therefore needs a halfway house. That makes the Sirisena SLFP an indispensable factor in any regime replacement scenario.

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PTA is an insult to Sri Lanka’s independent judiciary!

Opposition Leader Sajith Premadasa says he believes the Prevention of Terrorism Act is an insult to Sri Lanka’s independent judiciary. Sajith Premadasa has stated this in a letter to Sumanthiran regarding the Prevention of Terrorism Act.

Hon. M. A. Sumanthiran, MP

Parliament of Sri Lanka

Sri Jayewardenepura – Kotte.

Dear Hon. Sumanthiran,

I write to you with respect to the Prevention of Terrorism (Temporary Provisions) Act, No. 48 of 1979 (PTA), and your laudable campaign to repeal it.

In June 2021, in a public statement, the Samagi Jana Balawegaya (SJB) stated, that it is committed to the development of ‘a robust and effective national security framework, without compromising on human rights and democracy’. I wish to express that the SJB unequivocally maintains this position.

We recall the PTA was enacted as a ‘temporary provisions’ Act for a period of six months in 1979. Yet, this law has remained on Sri Lanka’s statute books for 43 years.

The PTA contains major weaknesses, which we believe are irredeemable. These weaknesses have enabled the persecution of political opponents, journalists, lawyers, and human rights activists. Indeed, even twelve years after the war ended, the PTA is being weaponised against these stakeholders.

We believe that the PTA is an insult to Sri Lanka’s independent judiciary, as it deprives judicial officers of powers afforded under the constitution and ordinary law, and places undue authority in the hands of the executive branch of government. For example, under ordinary law, a confession may be made only to a magistrate, whereas under the PTA a confession may be made to a police officer. Moreover, under ordinary law, a trial judge has the power to consider a suspect’s bail application, whereas, under the PTA, the trial judge is stripped of that power. These provisions reflect an undue lack of trust in the competence and capacity of judicial officers to make appropriate decisions, within the purview of the constitution.

We find that none of the many weaknesses of the PTA are addressed by the proposed amendments to the PTA that have been placed on the order paper of parliament. Therefore, the SJB rejects the proposed amendments in toto. Our position is that the PTA cannot be tinkered with. It must be repealed, and a law that accords with international standards and effectively balances public and national security, and personal liberty must replace it.

In its public statement in June 2021, the SJB noted that it does ‘not merely wish to point out the failings of the present government without offering viable solutions’. In this context, we recommend that the 2016 proposals of the Sri Lanka Law Commission, a body comprising eminent members of Sri Lanka’s legal fraternity, be adopted as the starting point to repeal and replace the current PTA. The proposals, titled the ‘Protection of National Security’ Bill are concise and effective, and are compatible with international best practices and our national security and human rights interests.

Warm regards.

Yours sincerely,

Sajith Premadasa, MP

Leader of the Opposition &

Leader of Samagi Jana Balawegaya

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Sri Lanka limits import of 367 non-essential items

A Gazette Extraordinary has been issued by the Department of Import and Export Control limiting the import of 367 non-essential goods into Sri Lanka unless with a valid licence.

Thereby, the Imports and Exports Control Regulation No 05 of 2022; Imposing requirement of Import Control License (ICL) on selected items comes into effect at midnight today (March 09).

The relevant gazette notification was issued by Finance Minister Basil Rajapaksa.

The regulations prescribed in the communiqué are only applicable to the importation of goods, which have the date of Bill of Lading/Airway Bill on or after March 10.

Licence to import the specified non-essential items will be issued subject to the recommendation of the Secretary to the Finance Ministry.

Any importers who wish to import the specified goods are thereby required to be in possession of a valid licence issued by the Controller-General of Imports and Exports Control, prior to the date of the Bill of Lading/Airway Bill of such importation.

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China looks to strengthen ties with Sri Lanka Parliament

China has sought to strengthen ties with the Parliament in Sri Lanka.

The Chinese Ambassador to Sri Lanka, Qi Zhenhong, called Speaker Mahinda Yapa Abeywardena, the Parliament media unit said today.

Discussions focused on strengthening ties between the two countries in various fields including inter-parliamentary relations.

The Speaker also expressed his gratitude to the Chinese Government for its continuous support to Sri Lanka in various fields during the Covid -19 pandemic.

Secretary General of Parliament Dhammika Dasanayake was also present at the meeting.

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Ranil says no national govt, but calls for all parties in Sri Lanka to unite to come out of crisis

Rumours have been rife that UNP Leader Ranil Wickremesinghe is in talks with Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa to form a national government amidst the ongoing crises, but sources close to Wickremesinghe yesterday denied these rumours saying the UNP Leader would not form a national government.

When contacted, senior members closely associated with Wickremesinghe told Daily Mirror that Wickremesinghe had discussed the ongoing issues with Mahinda Rajapaksa in a personal capacity but no official discussions had been held between the duo or even with President Gotabaya Rajapaksa.

Wickremesinghe had also not held any discussions, even unofficially, in forming a national government with the SLPP.

However, Wickremesinghe who has been calling for the government to go to the IMF to seek economic assistance has called on all political parties to unite with the government and identify the root cause of the issues so that they can be resolved.

He has also called for all parties to approve a national policy in Parliament that could take the country forward for at least the coming 15 years, and once this policy is agreed upon by all parties, then an election should be held so that a new government can be formed.

“In this national policy, we must ensure that the country does not fall into another crisis of this sort. Whoever the next government is elected will then have to work based on this iron framework or else policies keep changing and this is affecting the citizens,” Wickremesinghe has informed senior parliamentarians.

Meanwhile, the Daily Mirror learns that some of the government backbenchers in Parliament had been notified that an IMF assistance would be sought only after a local government election is held. However, all parties have presently agreed that now is not the time to hold the LG Polls due to the present economic crisis and the suffering burdened on the citizens.

Sri Lanka tourism sees arrival, revenue drop after Russian invasion

Sri Lankan tourism industry is likely to see a dip in arrivals and revenue as Russian national carrier Aeroflot halted international flights amid western sanctions over Vladimir Putin’s Ukraine invasion.

Aeroflot on Saturday 5th announced that it will be halting all international flights from March 08. The airline was flying to 146 destinations including Sri Lanka before the February 24 invasion.

Western nations including the USA, the European Union and Canada have imposed heavy sanctions including closing their airspace to Russia.

“Russia was the key market for Sri Lanka. This is not good news for us,” Nalin Jayasundera, the Vice-President of Sri Lanka Association of Inbound Tour Operators (SLAITO) and the Managing Director of Aitken Spence Travels told ECONOMYNEXT.

“But the disadvantage could be offset if SriLankan airlines continue to fly to Moscow.”

Russia and Ukraine were Sri Lanka’s key markets for tourists since it reopened the country for tourism in December 2020 after long Covid-19 lockdown.

The island nation, popular for its beaches and diverse nature, saw one fifth of its total 268,340 tourists visited from December to February were from Russia and Ukraine.

Winter Travel
Winter is a peak season for Sri Lanka tourism that runs from December to March.

Traditionally, tourists from Eastern Europe including Ukraine travel from harsh winters in the region till about mid-May.

“Russia is strong till about May 10 but now with what has happened and Aeroflot halting, we have seen a few cancellations,” Jayasundera explained.

“It is too early to say the full impact, but we are seeing cancellations.”

“Till April we have Russians and it drops afterwards. We can’t determine a figure at the moment but there will be a considerable drop from Russians,” Mahen Kariyawasam, immediate past president of SLAITO said.

However, industry veterans are hopeful about the situation because the Winter travel season is coming to an end while SriLankan Airlines and Emirates continue to offer flights to and from Moscow.

SriLankan Airlines has not increased the frequency from three per week, a national carrier official said.

More Trouble

Russians tourists also face issues in transactions because of some of their foreign assets being frozen while the Europeans and the Americans have been banned from
dealing with the Russian central bank or its wealth fund amid threats to cut off from Swift, a cross-border financial transaction system that’s connected to over 11,000 banks
with over 200 countries.

Visa, American Express and Mastercard have already suspended their operations in Russia. Although reports said the cards can be used until their expiry dates within Russia, they will be invalid abroad or for international payments online.

“Now the issue is the impact on arrivals and the uncertainty since Master Cards and Visa have been cancelled in Russia,” Charith De Alwis, General Manager of Tangerine Tours said.

“This will have a huge impact on people travelling, moreover the ruble has also depreciated by more than 30% right now,” he said.

“That means they are having issues in terms of spending and travelling will be less because disposable income is reducing and will be more cautious, as per what I feel this will affect tourism and arrivals.”

Sri Lanka has already seen a drop in tourism booking from Russia after the invasion and that is likely result in lower revenue in the leisure industry, hoteliers and travel agents.

“We have very few new bookings, we actually are waiting to see what will happen day by day. The situation is changing. We don’t have high hopes as of now. We are going to an off season. We are waiting till the situation cools down and hoping that won’t last longer than 4 to 5 months,” a spokesperson at Ceylon My Dream, a travel agency that caters to English, Russian and Japanese said.

“We are still getting clients but the majority of it has dropped by roughly 80%, new bookings we get but not as much as we did earlier. Currently, we have zero Ukrainians, but the rest are still coming in but of lower quantity than before.”