Tourism Minister Milinda Moragoda jointly with the Ministry of Finance announced the temporary relief package for the tourism industry as scheduled with immediate effect.

According to this package, the government decided the recovery of loans provided for Tsunami affected hotels to be deferred to temporary and all moratoriums on capital payments to be considered on condition that the interest is paid regularly.

Application of penal rates on debit servicing to be suspended.

Temporary deferment of VAT payable on Tourism operations for a period of 1 year – no penalty on delayed VAT payment from April 1, 2007 to March 31, 2008.

Payment of VAT liabilities for this period is extended till June 30, 2008.

Approval to dispose of vehicles imported under the duty free scheme without payment of penalty duty, so as to enable some from of alternate cash generation for companies in trouble it is being implemented.

This was decided at a meeting held last evening at the Ministry, chaired by the Minister after the consulting all sectors connected with the tourism industry.