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Fiscal decentralisation key to balanced growth

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By SANCHARI MUKHOPADHYAY

Urbanisation in India is progressing at an unprecedented pace, creating an urgent need to address the challenges that accompany it. The cities are growing, infrastructure is inadequate, and public services are under immense stress. At the heart of these challenges lies an elite-influenced urban growth pattern, represented by the disproportionate expansion of larger cities compared to the small cities and towns.

This also leads to over-congestion and strained resources for overall urban development. Addressing this issue necessitates a closer look at our urban development strategies, with a particular focus on small and medium towns and cities wherein fiscal decentralisation is also significant. Here, it is important to shed light on the imperative of recalibrating our approach to urban development, emphasising the potential of smaller urban centres in fostering balanced growth and sustainable futures.

The current urban landscape is of stark imbalance. Larger cities, home to millions, are growing at an exponential rate, attracting a huge pool of poor migrants in search of better economic opportunities. For the past few decades, the population in class I cities has been consistently increasing, intensifying the pressure on these urban agglomerations. On the flip side, smaller towns, and cities, despite housing nearly 43 per cent of the urban population, remain underlooked in terms of investment and development.

This top-heavy growth pattern not only misses the challenges faced by larger cities but also limits the potential for small and medium size urban centres to contribute to the country’s economic growth and sustainability. Fiscal decentralisation stands out as a crucial strategy in addressing the challenges posed by rapid urbanisation. At its core, fiscal decentralisation empowers local governments with the authority and resources to make decisions and raise revenue locally.

Transferring financial powers, functions, and resources from the central and state government to the local bodies can empower small and medium sized towns and cities, enable them to attract greater investment, create jobs, and support balanced regional growth. This can further allow smaller urban units to address their specific needs and experiment with innovative approaches and solutions tailored to their priorities.

The shift is vital in alleviating the mounting pressure on larger cities, and ensuring sustainable urban development even outside them. However, the journey towards effective fiscal decentralisation is riddled with challenges. Smaller towns and cities often suffer from limited financial autonomy, outdated revenue-generating mechanisms, and a lack of administrative as well as human capacities.

A report by the World Bank in 2019 highlighted that many small and medium-sized urban centres in India face issues related to inadequate service delivery, and infrastructural deficit. For instance, property tax, which is a significant source of revenue for local bodies, is underutilised in smaller towns, contributing to just 0.2 per cent of India’s GDP, compared to the global average of around 0.6 per cent. Furthermore, these urban centres often have limited access to capital markets, which restricts their ability to raise funds independently.

A multi-faceted strategy is essential to overcome these challenges. It is also to be noted that while GST is collected across the country, the share of the same is going only to two of the tiers of government, leaving out all local bodies from this revenue stream. Investing in infrastructure and service delivery emerges as a primary area of focus. Small and medium towns and cities require substantial financial support to enhance their quality of life and economic vitality.

This is where fiscal decentralisation steps in, ensuring that these towns and cities receive adequate financial support from higher levels of government. Revising tax systems, exploring alternative financing options, and investing in capacity-building initiatives and institutions are crucial steps in this direction. Additionally, promoting transparency and accountability in fiscal management is imperative.

Implementing robust financial management systems, conducting regular audits, and engaging citizens in the decision making and accountability process can ensure that funds are utilised effectively, fostering trust and participation among the local population. The central and state governments have to play a pivotal role in driving fiscal decentralisation, acting as regulators and facilitators. Providing the necessary policy framework, legal support, and financial assistance and provisions for adequate human resources are vital to empower local bodies to take charge of their development trajectories.

Engaging the private sector through private-public partnerships, particularly in a subsidised model, can also help bridge funding gaps and spur economic growth in smaller urban centres. Leveraging private investment in a respected as well as a regulated manner will not only enhance the financial capabilities of these towns and cities but also drive innovation and efficiency in public service delivery, although an additional task of minimising the conflict of interest arises here. As we observed World Cities Day on October 31, with a focus on ‘financing a sustainable urban future for all’, it becomes imperative to reflect on our urban development strategies.

This emphasis aligns seamlessly with the aspiration of achieving Sustainable Development Goals having a particular focus on inclusivity and matches well with the recent attention on ‘financing the cities of tomorrow’ during the recent G20 summit held in the country. Fiscal decentralisation, combined with systematic urban planning focusing on neglected urban settings, appears central to achieving inclusive and sustainable urban growth.

Engaging all stakeholders, from government bodies to local communities, in the urban development process is crucial for fostering collaborative and effective city management and planning. Fiscal decentralisation as told earlier, emerges as a critical tool in addressing the challenges of rapid urbanisation in India. It is not just a technical policy term but represents a transformative force that can directly impact the capacity of these neglected urban areas to gain prosperity.

By providing them with the necessary resources and autonomy, fiscal decentralisation can empower these towns and cities to become self-reliant contributors to regional development, and tap into their economic potential. While finding the right balance between the central and local control remains a complex task, the time to act is now, and a collaborative, transparent, and inclusive approach stands as the key to unlocking a sustainable urban future for India.

(TheStatesman/ANN)
(The writer is Policy Analyst, Centre for Budget and Governance Accountability, New Delhi. The views expressed are personal.)



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The invisible crisis: How tour guide failures bleed value from every tourist

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(Article 04 of the 04-part series on Sri Lanka’s tourism stagnation)

If you want to understand why Sri Lanka keeps leaking value even when arrivals hit “record” numbers, stop staring at SLTDA dashboards and start talking to the people who face tourists every day: the tour guides.

They are the “unofficial ambassadors” of Sri Lankan tourism, and they are the weakest, most neglected, most dysfunctional link in a value chain we pretend is functional. Nearly 60% of tourists use guides. Of those guides, 57% are unlicensed, untrained, and invisible to the very institutions claiming to regulate quality. This is not a marginal problem. It is a systemic failure to bleed value from every visitor.

The Invisible Workforce

The May 2024 “Comprehensive Study of the Sri Lankan Tour Guides” is the first serious attempt, in decades, to map this profession. Its findings should be front-page news. They are not, because acknowledging them would require admitting how fundamentally broken the system is. The official count (April 2024): SLTDA had 4,887 licensed guides in its books:

* 1,892 National Guides (39%)

* 1,552 Chauffeur Guides (32%)

* 1,339 Area Guides (27%)

* 104 Site Guides (2%)

The actual workforce: Survey data reveals these licensed categories represent only about 75% of people actually guiding tourists. About 23% identify as “other”; a polite euphemism for unlicensed operators: three-wheeler drivers, “surf boys,” informal city guides, and touts. Adjusted for informal operators, the true guide population is approximately 6,347; 32% National, 25% Chauffeur, 16% Area, 4% Site, and 23% unlicensed.

But even this understates reality. Industry practitioners interviewed in the study believe the informal universe is larger still, with unlicensed guides dominating certain tourist hotspots and price-sensitive segments. Using both top-down (tourist arrivals × share using guides) and bottom-up (guides × trips × party size) estimates, the study calculates that approximately 700,000 tourists used guides in 2023-24, roughly one-third of arrivals. Of those 700,000 tourists, 57% were handled by unlicensed guides.

Read that again. Most tourists interacting with guides are served by people with no formal training, no regulatory oversight, no quality standards, and no accountability. These are the “ambassadors” shaping visitor perceptions, driving purchasing decisions, and determining whether tourists extend stays, return, or recommend Sri Lanka. And they are invisible to SLTDA.

The Anatomy of Workforce Failure

The guide crisis is not accidental. It is the predictable outcome of decades of policy neglect, regulatory abdication, and institutional indifference.

1. Training Collapse and Barrier to Entry Failure

Becoming a licensed National Guide theoretically requires:

* Completion of formal training programmes

* Demonstrated language proficiency

* Knowledge of history, culture, geography

* Passing competency exams

In practice, these barriers have eroded. The study reveals:

* Training infrastructure is inadequate and geographically concentrated

* Language requirements are inconsistently enforced

* Knowledge assessments are outdated and poorly calibrated

* Continuous professional development is non-existent

The result: even licensed guides often lack the depth of knowledge, language skills, or service standards that high-yield tourists expect. Unlicensed guides have no standards at all. Compare this to competitors. In Mauritius, tour guides undergo rigorous government-certified training with mandatory refresher courses. The Maldives’ resort model embeds guide functions within integrated hospitality operations with strict quality controls. Thailand has well-developed private-sector training ecosystems feeding into licensed guide pools.

2. Economic Precarity and Income Volatility

Tour guiding in Sri Lanka is economically unstable:

* Seasonal income volatility: High earnings in peak months (December-March), near-zero in low season (April-June, September)

* No fixed salaries: Most guides work freelance or commission-based

* Age and experience don’t guarantee income: 60% of guides are over 40, but earnings decline with age due to physical demands and market preference for younger, language-proficient guides

* Commission dependency: Guides often earn more from commissions on shopping, gem purchases, and restaurant referrals than from guiding fees

The commission-driven model pushes guides to prioritise high-commission shops over meaningful experiences, leaving tourists feeling manipulated. With low earnings and poor incentives, skilled guides exist in the profession while few new entrants join. The result is a shrinking pool of struggling licensed guides and rising numbers of opportunistic unlicensed operators.

3. Regulatory Abdication and Unlicensed Proliferation

Unlicensed guides thrive because enforcement is absent, economic incentives favour avoiding fees and taxes, and tourists cannot distinguish licensed professionals from informal operators. With SLTDA’s limited capacity reducing oversight, unregistered activity expands. Guiding becomes the frontline where regulatory failure most visibly harms tourist experience and sector revenues in Sri Lanka.

4. Male-Dominated, Ageing, Geographically Uneven Workforce

The guide workforce is:

* Heavily male-dominated: Fewer than 10% are women

* Ageing: 60% are over 40; many in their 50s and 60s

* Geographically concentrated: Clustered in Colombo, Galle, Kandy, Cultural Triangle—minimal presence in emerging destinations

This creates multiple problems:

* Gender imbalance: Limits appeal to female solo travellers and certain market segments (wellness tourism, family travel with mothers)

* Physical limitations: Older guides struggle with demanding itineraries (hiking, adventure tourism)

* Knowledge ossification: Ageing workforce with no continuous learning rehashes outdated narratives, lacks digital literacy, cannot engage younger tourist demographics

* Regional gaps: Emerging destinations (Eastern Province, Northern heritage sites) lack trained guide capacity

1. Experience Degradation Lower Spending

Unlicensed guides lack knowledge, language skills, and service training. Tourist experience degrades. When tourists feel they are being shuttled to commission shops rather than authentic experiences, they:

* Cut trips short

* Skip additional paid activities

* Leave negative reviews

* Do not return or recommend

The yield impact is direct: degraded experiences reduce spending, return rates, and word-of-mouth premium.

2. Commission Steering → Value Leakage

Guides earning more from commissions than guiding fees optimise for merchant revenue, not tourist satisfaction.

This creates leakage: tourism spending flows to merchants paying highest commissions (often with foreign ownership or imported inventory), not to highest-quality experiences.

The economic distortion is visible: gems, souvenirs, and low-quality restaurants generate guide commissions while high-quality cultural sites, local artisan cooperatives, and authentic restaurants do not. Spending flows to low-value, high-leakage channels.

3. Safety and Security Risks → Reputation Damage

Unlicensed guides have no insurance, no accountability, no emergency training. When tourists encounter problems, accidents, harassment, scams, there is no recourse. Incidents generate negative publicity, travel advisories, reputation damage. The 2024-2025 reports of tourists being attacked by wildlife at major sites (Sigiriya) with inadequate safety protocols are symptomatic. Trained, licensed guides would have emergency protocols. Unlicensed operators improvise.

4. Market Segmentation Failure → Yield Optimisation Impossible

High-yield tourists (luxury, cultural immersion, adventure) require specialised guide-deep knowledge, language proficiency, cultural sensitivity. Sri Lanka cannot reliably deliver these guides at scale because:

* Training does not produce specialists (wildlife experts, heritage scholars, wellness practitioners)

* Economic precarity drives talent out

* Unlicensed operators dominate price-sensitive segments, leaving limited licensed capacity for premium segments

We cannot move upmarket because we lack the workforce to serve premium segments. We are locked into volume-chasing low-yield markets because that is what our guide workforce can provide.

The way forward

Fixing Sri Lanka’s guide crisis demands structural reform, not symbolic gestures. A full workforce census and licensing audit must map the real guide population, identify gaps, and set an enforcement baseline. Licensing must be mandatory, timebound, and backed by inspections and penalties. Economic incentives should reward professionalism through fair wages, transparent fees, and verified registries. Training must expand nationwide with specialisations, language standards, and continuous development. Gender and age imbalances require targeted recruitment, mentorship, and diversified roles. Finally, guides must be integrated into the tourism value chain through mandatory verification, accountability measures, and performancelinked feedback.

The Uncomfortable Truth

Can Sri Lanka achieve high-value tourism with a low-quality, largely unlicensed guide workforce? The answer is NO. Unambiguously, definitively, NO. Sri Lanka’s guides shape tourist perceptions, spending, and satisfaction, yet the system treats them as expendable; poorly trained, economically insecure, and largely unregulated. With 57% of tourists relying on unlicensed guides, experience quality becomes unpredictable and revenue leaks into commission-driven channels.

High-yield markets avoid destinations with weak service standards, leaving Sri Lanka stuck in low-value, volume tourism. This is not a training problem but a structural failure requiring regulatory enforcement, viable career pathways, and a complete overhaul of incentives. Without professionalising guides, high-value tourism is unattainable. Fixing the guide crisis is the foundation for genuine sector transformation.

The choice is ours. The workforce is waiting.

This concludes the 04-part series on Sri Lanka’s tourism stagnation. The diagnosis is complete. The question now is whether policymakers have the courage to act.

For any concerns/comments contact the author at saliya.ca@gmail.com

(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT, Malabe. The views and opinions expressed in this article are personal.)

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Recruiting academics to state universities – beset by archaic selection processes?

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by Kaushalya Perera

Time has, by and large, stood still in the business of academic staff recruitment to state universities. Qualifications have proliferated and evolved to be more interdisciplinary, but our selection processes and evaluation criteria are unchanged since at least the late 1990s. But before I delve into the problems, I will describe the existing processes and schemes of recruitment. The discussion is limited to UGC-governed state universities (and does not include recruitment to medical and engineering sectors) though the problems may be relevant to other higher education institutions (HEIs).

How recruitment happens currently in SL state universities

Academic ranks in Sri Lankan state universities can be divided into three tiers (subdivisions are not discussed).

* Lecturer (Probationary)

recruited with a four-year undergraduate degree. A tiny step higher is the Lecturer (Unconfirmed), recruited with a postgraduate degree but no teaching experience.

* A Senior Lecturer can be recruited with certain postgraduate qualifications and some number of years of teaching and research.

* Above this is the professor (of four types), which can be left out of this discussion since only one of those (Chair Professor) is by application.

State universities cannot hire permanent academic staff as and when they wish. Prior to advertising a vacancy, approval to recruit is obtained through a mind-numbing and time-consuming process (months!) ending at the Department of Management Services. The call for applications must list all ranks up to Senior Lecturer. All eligible candidates for Probationary to Senior Lecturer are interviewed, e.g., if a Department wants someone with a doctoral degree, they must still advertise for and interview candidates for all ranks, not only candidates with a doctoral degree. In the evaluation criteria, the first degree is more important than the doctoral degree (more on this strange phenomenon later). All of this is only possible when universities are not under a ‘hiring freeze’, which governments declare regularly and generally lasts several years.

Problem type 1

Archaic processes and evaluation criteria

Twenty-five years ago, as a probationary lecturer with a first degree, I was a typical hire. We would be recruited, work some years and obtain postgraduate degrees (ideally using the privilege of paid study leave to attend a reputed university in the first world). State universities are primarily undergraduate teaching spaces, and when doctoral degrees were scarce, hiring probationary lecturers may have been a practical solution. The path to a higher degree was through the academic job. Now, due to availability of candidates with postgraduate qualifications and the problems of retaining academics who find foreign postgraduate opportunities, preference for candidates applying with a postgraduate qualification is growing. The evaluation scheme, however, prioritises the first degree over the candidate’s postgraduate education. Were I to apply to a Faculty of Education, despite a PhD on language teaching and research in education, I may not even be interviewed since my undergraduate degree is not in education. The ‘first degree first’ phenomenon shows that universities essentially ignore the intellectual development of a person beyond their early twenties. It also ignores the breadth of disciplines and their overlap with other fields.

This can be helped (not solved) by a simple fix, which can also reduce brain drain: give precedence to the doctoral degree in the required field, regardless of the candidate’s first degree, effected by a UGC circular. The suggestion is not fool-proof. It is a first step, and offered with the understanding that any selection process, however well the evaluation criteria are articulated, will be beset by multiple issues, including that of bias. Like other Sri Lankan institutions, universities, too, have tribal tendencies, surfacing in the form of a preference for one’s own alumni. Nevertheless, there are other problems that are, arguably, more pressing as I discuss next. In relation to the evaluation criteria, a problem is the narrow interpretation of any regulation, e.g., deciding the degree’s suitability based on the title rather than considering courses in the transcript. Despite rhetoric promoting internationalising and inter-disciplinarity, decision-making administrative and academic bodies have very literal expectations of candidates’ qualifications, e.g., a candidate with knowledge of digital literacy should show this through the title of the degree!

Problem type 2 – The mess of badly regulated higher education

A direct consequence of the contemporary expansion of higher education is a large number of applicants with myriad qualifications. The diversity of degree programmes cited makes the responsibility of selecting a suitable candidate for the job a challenging but very important one. After all, the job is for life – it is very difficult to fire a permanent employer in the state sector.

Widely varying undergraduate degree programmes.

At present, Sri Lankan undergraduates bring qualifications (at times more than one) from multiple types of higher education institutions: a degree from a UGC-affiliated state university, a state university external to the UGC, a state institution that is not a university, a foreign university, or a private HEI aka ‘private university’. It could be a degree received by attending on-site, in Sri Lanka or abroad. It could be from a private HEI’s affiliated foreign university or an external degree from a state university or an online only degree from a private HEI that is ‘UGC-approved’ or ‘Ministry of Education approved’, i.e., never studied in a university setting. Needless to say, the diversity (and their differences in quality) are dizzying. Unfortunately, under the evaluation scheme all degrees ‘recognised’ by the UGC are assigned the same marks. The same goes for the candidates’ merits or distinctions, first classes, etc., regardless of how difficult or easy the degree programme may be and even when capabilities, exposure, input, etc are obviously different.

Similar issues are faced when we consider postgraduate qualifications, though to a lesser degree. In my discipline(s), at least, a postgraduate degree obtained on-site from a first-world university is preferable to one from a local university (which usually have weekend or evening classes similar to part-time study) or online from a foreign university. Elitist this may be, but even the best local postgraduate degrees cannot provide the experience and intellectual growth gained by being in a university that gives you access to six million books and teaching and supervision by internationally-recognised scholars. Unfortunately, in the evaluation schemes for recruitment, the worst postgraduate qualification you know of will receive the same marks as one from NUS, Harvard or Leiden.

The problem is clear but what about a solution?

Recruitment to state universities needs to change to meet contemporary needs. We need evaluation criteria that allows us to get rid of the dross as well as a more sophisticated institutional understanding of using them. Recruitment is key if we want our institutions (and our country) to progress. I reiterate here the recommendations proposed in ‘Considerations for Higher Education Reform’ circulated previously by Kuppi Collective:

* Change bond regulations to be more just, in order to retain better qualified academics.

* Update the schemes of recruitment to reflect present-day realities of inter-disciplinary and multi-disciplinary training in order to recruit suitably qualified candidates.

* Ensure recruitment processes are made transparent by university administrations.

Kaushalya Perera is a senior lecturer at the University of Colombo.

(Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.)

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Talento … oozing with talent

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Talento: Gained recognition as a leading wedding and dance band

This week, too, the spotlight is on an outfit that has gained popularity, mainly through social media.

Last week we had MISTER Band in our scene, and on 10th February, Yellow Beatz – both social media favourites.

Talento is a seven-piece band that plays all types of music, from the ‘60s to the modern tracks of today.

The band has reached many heights, since its inception in 2012, and has gained recognition as a leading wedding and dance band in the scene here.

The members that makeup the outfit have a solid musical background, which comes through years of hard work and dedication

Their portfolio of music contains a mix of both western and eastern songs and are carefully selected, they say, to match the requirements of the intended audience, occasion, or event.

Although the baila is a specialty, which is inherent to this group, that originates from Moratuwa, their repertoire is made up of a vast collection of love, classic, oldies and modern-day hits.

The musicians, who make up Talento, are:

Prabuddha Geetharuchi:

Geilee Fonseka: Dynamic and charismatic vocalist

Prabuddha Geetharuchi: The main man behind the band Talento

(Vocalist/ Frontman). He is an avid music enthusiast and was mentored by a lot of famous musicians, and trainers, since he was a child. Growing up with them influenced him to take on western songs, as well as other music styles. A Peterite, he is the main man behind the band Talento and is a versatile singer/entertainer who never fails to get the crowd going.

Geilee Fonseka (Vocals):

A dynamic and charismatic vocalist whose vibrant stage presence, and powerful voice, bring a fresh spark to every performance. Young, energetic, and musically refined, she is an artiste who effortlessly blends passion with precision – captivating audiences from the very first note. Blessed with an immense vocal range, Geilee is a truly versatile singer, confidently delivering Western and Eastern music across multiple languages and genres.

Chandana Perera (Drummer):

His expertise and exceptional skills have earned him recognition as one of the finest acoustic drummers in Sri Lanka. With over 40 tours under his belt, Chandana has demonstrated his dedication and passion for music, embodying the essential role of a drummer as the heartbeat of any band.

Harsha Soysa:

(Bassist/Vocalist). He a chorister of the western choir of St. Sebastian’s College, Moratuwa, who began his musical education under famous voice trainers, as well as bass guitar trainers in Sri Lanka. He has also performed at events overseas. He acts as the second singer of the band

Udara Jayakody:

(Keyboardist). He is also a qualified pianist, adding technical flavour to Talento’s music. His singing and harmonising skills are an extra asset to the band. From his childhood he has been a part of a number of orchestras as a pianist. He has also previously performed with several famous western bands.

Aruna Madushanka:

(Saxophonist). His proficiciency in playing various instruments, including the saxophone, soprano saxophone, and western flute, showcases his versatility as a musician, and his musical repertoire is further enhanced by his remarkable singing ability.

Prashan Pramuditha:

(Lead guitar). He has the ability to play different styles, both oriental and western music, and he also creates unique tones and patterns with the guitar..

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