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What will happen to Sri Lanka`s tourism industry?

Saturday, 22 November 2008 - 8:20 PM SL Time

[Mexico

As south-east Asian currencies have soared - the pound has lost 16% versus the Thai baht year on year, and the Malaysian ringgit is at its strongest against sterling for the past 12 months - the Mexican peso has weakened 12.8% in the past month alone. With charter airlines such as Thomas Cook servicing Cancun from the UK, flights to Mexico are cheaper than to south-east Asia.

Sometimes, stability is the best you can hope for. The pound has been holding its own against the Turkish lira, and is worth the same amount as it was last year. New York might have been the Christmas shopping destination of choice in 2007, but Istanbul offers significantly better value, not to mention cheaper flights. It is the fastest-growing city break destination in Europe, and has seen an 18% increase in British visitors this year, according to Turkey`s tourist board. ]

Sri Lanka has been a very popular destination for British tourists until recently, but the problem now is the over-valued rupee. mahinda and his sidekick Cabraal are determined to maintain the value of the rupee.Many Brits will now prefer Mexico or Turkey to Sri Lanka.

Source(s)
http://www.guardian.co.uk/money/2008/nov/22/foreign-currency-consumer-affairs-travel

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RealKaruna
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LK Information  22 Nov 2008 14:22:53 GMT  Report for Abuse  
6 months ago a British tourist could get Rs.225 for one pound sterling. Now he can get only Rs.162. This is why he may prefer to go on holiday to Mexico or Turkey.
KURAL
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LK Information  22 Nov 2008 14:29:16 GMT  Report for Abuse  
RK,

Is the rupee value a consequence of the war, or due to the global economical crisis ?

Maybe both.
RealKaruna
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LK Information  22 Nov 2008 14:38:08 GMT  Report for Abuse  
Kural,

The rupee is over-valued due to the rampant inflation in Sri Lanka. Inflation in turn is partly due to the war, but also due to the money being drained by the highly over-staffed government service, many government servants doing non-productive jobs.

If Sri Lanka is running a sensible economic policy they would devalue the rupee by 10 to 20% to help exporters, thereby making the economy stronger to cope with the world economic crisis.

RK
laliths
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LK Information  22 Nov 2008 14:51:35 GMT  Report for Abuse  
'The Fundamentals of Sri Lanka economy is strong', NOW

Let's finish this damn war and the 'The Fundamentals of Sri Lanka economy will go through the roof'
RealKaruna
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LK Information  22 Nov 2008 14:56:07 GMT  Report for Abuse  
'The Fundamentals of Sri Lanka economy is strong', NOW

Let's finish this damn war and the 'The Fundamentals of Sri Lanka economy will go through the roof'


That is wishful thinking. There are billions of dollars of loans to be repaid, and few will want to invest in a country where there is no racial harmony.
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