Press briefing of Cabinet Decision taken on 2019-09-17

Entering into Viability Gap Funding Agreements (VGF) with Domestic Air Services Companies to undertake scheduled domestic air services to selected destinations

- Approval of the Cabinet has already been granted to select domestic aviation companies applicable only to operate scheduled domestic flights to selected destinations, which do not exceed a maximum charge of US$ 100 - 150 for one way travel and to finalize a viability gap funding mechanism to settle any shortfall on expenditure and income that would occur, as an inducement to the tourism industry. Accordingly, the proposal made by the Prime Minister and Minister of National Policies, Economic Affairs, Resettlement & Rehabilitation, Northern Province Development and Youth Affairs, for the Sri Lanka Tourism Development Authority to enter into Viability Gap Funding Agreements with the said domestic aviation companies, subject to presenting the detailed operating statistics and the business plan for the next one year to the National Agency for Public-Private Partnership (NAPPP), on the format prepared by NAPPP, was approved by the Cabinet.