Tourism industry must build resilience against future shocks: CBSL Chief

• 5opn1
• December 2, 2024
• Travel and Tourism
• Tourism industry must build resilience against future shocks: CBSL Chief
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• Addresses 59th Anniversary of THASL, urges tourism sector to build financial buffers and reduce reliance on Govt. interventions during crises
• Stresses on need for stakeholders to learn from past vulnerabilities and prepare for future disruptions
• Calls on industry to capitalise on opportunities, as country benefits from more stable political and economic environment

Central Bank Governor Dr. Nandalal Weerasinghe last week said tourism industry must establish robust financial buffers and shock absorbers to weather future crises independently.

Participating as the Chief Guest at The Hotels Association of Sri Lanka (THASL) Annual General Meeting and 59th Anniversary of the Association last Thursday, he urged the industry to reduce reliance on Government intervention such as moratoriums during economic downturns.

Reflecting on the challenges of recent years, the Governor recalled numerous meeting with THASL members who had sought relief measure during the pandemic and subsequent economic crisis. “As Governor, I don’t have to be popular.

I always had frank discussions with the industry,” Dr. Weerasinghe said, emphasising the need for tourism stakeholder to learn from past crises.

Acknowledging the sector’s vulnerability to both domestic and international disruptions, he commended its resilience and patience in stabilising operations over the past two years.

Dr. Weerasinghe noted that the country’s political and economic stability achieved through difficult reforms and debt restructuring now provides a foundation for the industry to thrive.

“An industry like tourism is more vulnerable to internal and external shocks than most sectors, must use this period of relative stability to prepare for future challenges,” he pointed out.

The Governor compared the situation to the broader national economy, highlighting how the country had lost its fiscal buffers – foreign exchange reserves during the economic crisis. He said the economic measures taken since, has restored stability in fiscal policy, reserves and interest rates offering another change for recovery and growth for the next 4-5 years.

With Sri Lanka now benefitting from a more stable political and economic environment, Dr. Weerasinghe called on the tourism industry to seize the opportunity to strengthen its financial foundations. “From an economic point of view, tourism is one of the important industries. The experience must be seen as a positive one, providing the momentum to build a more resilient industry and contributing to the overall economy,” he said.

The Governor expressed optimism about maintaining the economic stability, achieved so far, insisting on the tourism industry to take advantage of the current environment to secure its long term sustainability.

By Charumini de Silva