My recent trip to Cyprus made me realise one thing: Duty shopping in Cyprus is crap.
From my limited understanding of the topic the Cyprus Airways- Sri Lanka adventure went pear shaped because the Sri Lankans prefered to go bargain hunting in duty free havens like Dubai and Bahrain.
Maybe the Cypriot government has to nationalise its duty free shops and heavily subsidise Duty Free Shops. Provide them with free rent or free labour who knows but the flow on effect of a reputation for discount Duty free shopping would attract Shoppers and may even make Cyprus an industry hub.