Sri Lanka faces worst currency depreciation, tourism hit: Lanka IOC MD

Colombo [Sri Lanka]Apr 09 (ANI): Negative social media has had a negative impact on Sri Lanka’s tourism sector, which is battling its worst economic crisis, according to the managing director of Lanka IOC, a subsidiary of the Indian Oil Corporation.

In an interview with ANI, CIO Lanka Director General Manoj Gupta said, “To order shipments, Sri Lanka needs $30-32 million to open the Letter of Credit (LC) and it is extremely difficult to order shipments. to open such a LC in Sri Lanka. Lanka these days.”

“A single bank cannot open such a large LC of 32 million and for that we have to contact at least four to five banks. We are grateful to the Central Bank of Sri Lanka and other licensed commercial banks, who enabled us to open LC to import fuel shipments,” he added.

Noting the problem of non-availability of dollars, Gupta noted, “Banks are also telling us that they no longer have dollars with them. still don’t have the liquidity to offer.”

The chief executive said that fortunately tourism had recently picked up, but news articles on social media had hurt the sector.

“After the Covid pandemic, we were so happy, so proud that every month thousands of tourists from all over the world came to visit the beautiful island. But some press articles on social networks had a negative effect on the tourism industry. tourism due to where many bookings have been canceled. I strongly believe that this too will pass and we will get through the tough times. Social media plays a very important role because everyone is on Twitter and Facebook and that is the mode fastest way of communication,” he said while expressing hope for the future of Sri Lanka.

The chief executive of the IOC of Lanka added that it supplies diesel to hotels, schools, airports, hospitals, embassies and construction sites, among others. “Where we’re sitting right now is the World Trade Center in Colombo, which is also sourcing diesel because there are sometimes hour-long power outages,” Gupta said.

“I understand that we may not be able to contribute to the necessary requirements, due to our scale limitations, but to a large extent we are trying to contribute to the best of our abilities. I am now confident that before , certainly, the situation will change for the better. I repeat that the biggest problem is the availability of the USD. At the same time, I am convinced that the way we have gone through the pandemic, we will overcome this difficult period and difficult phase too,” Gupta said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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