Evaluation of Credit Risk and Rehabilitation Strategies for Small and MediumScale Commercial Loans in Sri Lanka's Tourism Industry: An Analysis of Commercial Banks Practices and Market Recapture Approaches (Reference on Bank of Ceylon-Sri Lanka)

The main objective of this study is to evaluate the credit risk on small and medium scale commercial loans in tourism industry within Sri Lanka, identifying how intensely most used by commercial banks while they manage these risks. The tourism industry is one of the most important contributors to Sri Lanka's economy, yet it is a primary area in which this country remains extremely vulnerable with respect to external shocks be they economic downturns or political instability [1]. Due to SMEs in this sector having little financial resources and are more highly dependent on tourism revenue [2]. The study will focus on the competitive environment, identifying key business competitors and investigate the recovery interventions masses up by commercial banks to market SMEs reclaim their markets post-crisis. This research aims to analyze practices of commercial banks, i.e., stringent processes for credit assessment; diversification strategies and customized financial solutions so as to provide conceptual framework on effective risk management and relationships of interventions in a post-conflict tourism sector [3]. The results will also assist banks to address credit risk and promote the sustainability and expansion of tourism SMEs in general, as well as under changing macro-economic changes (dynamic-chaotic) circumstances.