Sri Lanka to add new domestic air service in 2017: Budget

Nov 11, 2016 (LBO) - Sri Lanka will introduce a new domestic airline by March 2017 to increase local connectivity, the Finance minister said. "This airline will be on a public private partnership agreement, which will include the Sri Lanka Air Force, the hotel industry, travel agents and other private sector stakeholders," Ravi Karunanayake, finance minister said during his budget 2017 speech in Parliament on Thursday. "I propose to allocate 50 million rupees as the initial government contribution for this purpose." There is potential for the country to position itself as an aviation hub, he said. In this regard, Karunanayake says the flying training industry has shown signs of being a growing industry. "As such, to support this industry, we invite Ceylon Petroleum Corporation to provide Jet Fuel at competitive prices.
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" "We will also exempt the spare parts from all taxes with the recommendation of the Civil Aviation Authority."