In the aftermath of the unprecedented economic crisis that plagued Sri Lanka last year, the island nation is now gradually recovering. Despite the challenges faced, including lengthy queues for fuel and sporadic shortages of essential items, the country is witnessing significant progress in its recovery. 

However, an erroneous perception still persists among foreigners, who believe that Sri Lanka continues to suffer from the economic crisis, including a scarcity of food. To dispel these misconceptions and showcase the nation’s true trajectory, a comprehensive campaign may be required, highlighting the remarkable strides made in Sri Lanka’s recovery.

A comprehensive strategy 

Speaking to The Sunday Morning, Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Chalaka Gajabahu discussed the challenges faced by the country’s tourism industry and unveiled a comprehensive strategy to promote its recovery and dispel misconceptions. 

Emphasising on the need to address the prevailing negative perception, Gajabahu outlined a series of initiatives to showcase the country’s progress and attract visitors from key international markets.

Gajabahu acknowledged that despite the ongoing recovery, Sri Lanka continued to grapple with the misperception that it lacked sufficient food supplies and fuel for vehicles. He affirmed the SLTPB’s commitment to prioritising the communication of the country’s improvement before focusing on promoting tourist destinations.

“This has been happening for the past seven to eight months or so with a lot of programmes, which we are trying to do with our 19 markets,” he stated.

The Chairman highlighted that the bureau had been actively engaged in targeted campaigns in 19 key markets, including India, China, Russia, the UK, France, Germany, Australia, the Middle East, and Scandinavia. 

Over the past several months, a series of effective programmes have been implemented to bridge the gap between perception and reality. 

Gajabahu stressed the importance of experiencing Sri Lanka firsthand: “The reality is different when you come and visit.”

As part of its efforts, the bureau plans to host a significant number of influencers, including bloggers and journalists, from the aforementioned countries. 

Gajabahu revealed that the goal was to bring 1,000 influencers over the next 12 months to provide authentic accounts of Sri Lanka’s progress. The initiative has already gained momentum, with influencers from the UK, India, Australia, France, and Germany recently visiting the country.

Furthermore, Gajabahu announced the impending launch of a 360-degree marketing communication campaign, scheduled to commence at the end of July. 

The campaign will be executed in two phases, with the first phase aimed at reshaping the public’s perception of Sri Lanka’s business and consumer environment. Through an extensive social media and public relations campaign spanning two to three months, the bureau intends to refresh Sri Lanka in the minds of people.

The second phase will be a year-long thematic campaign that focuses on portraying the essence of Sri Lanka and its unique offerings. This comprehensive approach will be supported by an overarching 360 umbrella branding strategy, featuring various categories and subcategories. 

Gajabahu expressed the SLTPB’s intention to launch this campaign to local media as well, with a press conference planned for mid-July to unveil the entire 12-month plan.

Efforts underway to counteract misconceptions

Meanwhile, The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar revealed to The Sunday Morning that efforts were underway to address the prevailing negative perception of the country and promote its ongoing recovery in the tourism sector. 

Despite the erroneous belief overseas that Sri Lanka faces a scarcity of food and fuel, Shanthikumar affirmed that collaborative actions were being taken to rectify this misconception and showcase the positive improvements in the country.

When asked about the plans in place to promote the country’s recovery, Shanthikumar responded: “Currently, the industry, in collaboration with the SLTPB, is actively engaged in digital marketing and communication to counter the negative narrative.”

He emphasised that the necessary steps were being taken despite delays in order to ensure awareness that there were no shortages in the country. “The SLTPB is focusing on digital marketing and global outreach to counter the adverse publicity,” he noted. 

He acknowledged that despite certain interested parties in other parts of the world continuing to propagate misperceptions, concerted efforts were being undertaken by both the industry and the SLTPB to counteract and dispel these misconceptions.

Moreover, Shanthikumar expressed optimism about the current growth in tourist arrivals and anticipated further improvements in the months ahead: “We are witnessing a modest growth in arrivals at present and we expect this positive trend to continue and strengthen from July onwards.”

As Sri Lanka’s tourism industry aims to recover from the impacts of the pandemic, the collaboration between THASL and SLTPB is geared towards correcting misinformation and portraying an accurate picture of the country’s situation. 

By leveraging digital marketing strategies and implementing robust communication efforts, they seek to rebuild confidence among potential tourists and showcase the progress that Sri Lanka has made on its path to recovery.

Campaigns by SL embassies abroad 

Meanwhile, AGSEP Research CEO Dr. Dietmar Doering told The Sunday Morning that none of the improvements in the island would make a difference unless they were properly documented and reported in the foreign markets. 

Doering stated that Western countries continued to portray a gloomy picture of Sri Lanka, which was replicated in their travel advisories. 

“It may be more helpful if the Sri Lankan embassies abroad undertake regular and repeated promotion campaigns, answering questions of visitors and directing all realistic pieces of information regarding Sri Lanka to foreigners. 

“The Government should direct the foreign embassies to regularly organise such types of promotions. Travel fairs can do their part as well, but Sri Lankan embassies may have a bigger impact on the promotion of Sri Lanka, since visitors can focus better on one subject compared to seeing multiple countries in the typical tourism fair scenario,” Doering explained.

Rupee depreciation: Not a surprise?

While some perceive the current depreciation of the Sri Lankan Rupee as a significant development, First Capital Holdings Chief Research and Strategy Officer Dimantha Mathew told The Sunday Morning that this was an anticipated occurrence, given the easing of import restrictions and the country’s economic situation.

He attributed the temporary appreciation to an unexpected influx of inflows into Government Treasury bills and bonds, which had now slowed down, leading to the current depreciation.

Highlighting the factors influencing the rupee’s decline, Mathew pointed out: “The second half of the year has seen depreciation due to the import restrictions coming into effect.”

He further noted that the Government had stated its non-interference in the market trends despite its purchasing activities. Consequently, the market is expected to find stability on its own as other countries determine their trading positions.

Regarding the predictability of this phenomenon, Mathew stated: “Once the import restrictions are eased, rupee depreciation becomes an expected outcome.”

He emphasised that this projection aligned with their recently-released report, which upgrades the rupee expectation. 

The previous estimation of a mid-level of 375 has now been revised to a range of 320 to 360, considering a potential delay in market recovery due to negative credit growth. However, Mathew remains optimistic, anticipating positive GDP growth in the fourth quarter, leading to a gradual currency recovery.

As Sri Lanka focuses on export-oriented economic recovery, a gradual decline in the rupee is a natural consequence. Mathew emphasised that this depreciation should not come as a surprise. While challenges persist, the expectation is that the currency will recover as the economy strengthens.