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Hoteliers call for state assistance

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By Harischandra Gunaratna

Newly elected President of the Hotels Association of Sri Lanka (THASL) M. Shanthikumar says Budget 2022 has not addressed their problems.

Addressing THASL’s 56th anniversary celebrations at Taj Samudra, Colombo, recently, Shanthikumar said: “We are disappointed that Budget 2022 has ignored tourism. It is an industry in distress needing state assistance for survival and revival.

“Hoteliers are already burdened with a series of topline taxes and levies. The topline social security contribution of 2.5% is definitely adding to their burden. We have been without revenues for nearly 18 months but continue to pay workers and maintain our hotels. The industry will lose its competitive edge in marketing the destination with such taxes and there is no doubt it will affect the anticipated tourist arrival growth into the country.

“Being an industry with dollar earnings we need the government to consider exempting the tourism sector from the social security tax of 2.5% on the total revenue at least until such time we see the tourist arrivals stabilising the country’s economy. This is absolutely critical.

“Due to the nonpayment of the loan capital and interest during the moratorium, the loan balances increased by 40% thereby increasing the liability. The lack of funds is posing a challenge for hoteliers to continue to maintain the staff, the plant and to carry out even the smallest of refurbishment to welcome tourists.

“Seeing a virtual collapse of hotels, we requested for a long-term debt restructuring from the government as revenues and profits began to slide post the Easter Sunday attack. These were requested ONLY for businesses that had settled their dues until the Easter Sunday attack. It was very clearly stated in all THASL letters to the Government. We have no issue in this being brought in as a criteria. The most important thing is for the government to act as soon as possible. We therefore request the Govt to provide such a relief which will be very helpful to sustain this industry where over 3 million of our population depend upon.

“A long-term request to relieve the hotel industry of the burden of an unfair topline tax of 1% Municipality and by Local Government authorities has still not been settled. It is totally discriminatory to charge millions of rupees from hotels by local Government authorities when they only charge without an exception a measly sum of Rs. 6000 annually as license fees from every other industry. Why do hoteliers have to pay so much more when the industry is struggling to survive? We seek immediate attention from the Government again to resolve this issue and abolish this tax.

“So is the case with Electricity. The tariff rate for the hotel industry is higher than all the other sectors. Our request is for the Government to bring the Hotel Sector on par with the other industry tariffs and not to discriminate against the hotel sector with higher tariffs.

“Further, with the onset of the pandemic in early 2020, closed borders and vacant hotel rooms, the hoteliers could not settle their electricity bills. We requested a temporary installment settlement structure over a period of 12 month from March 2020 to September 2021 (for 18 months).

“Unfortunately, we have not received a positive response to any one of these critical requests,” Shanthikumar said.



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New circular issued to support disaster-affected Micro, Small and Self-Employed Businesses

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A new circular has been issued by the Ministry of Finance, Planning and Economic Development to provide relief to micro, small and self-employed businesses affected by the emergency situation caused by Cyclone Ditwah. The circular has been issued in line with Circular No. 08/2025, which was introduced to restore disrupted livelihoods following the disaster.

The Government programme to empower communities affected by the disaster was introduced through Budget Circular No. 08/2025 dated December 5, 2025. Expanding this relief framework further and ensuring more effective and efficient delivery of assistance, additional circulars No. 08/2025(i) dated December 20, 2025 and No. 08/2025(iii) dated January 22, 2026 have been issued.

The social empowerment programme under the newly issued circular is structured as follows.

Assistance for affected individual, small and micro businesses

A one-time grant to restore businesses damaged by the disaster to a condition suitable for reopening.

LKR 200,000 for individual, small and micro-businesses registered with the Ministry of Industry.

LKR 200,000 for individual, small and micro-businesses registered with the Divisional Secretariat as a business entity.

LKR 50,000 for unregistered home-based businesses operated from a permanent structure.

LKR 50,000 per unit for unregistered production industries, including greenhouses.

LKR 25,000 for temporary business setups, including mobile and street hawking.

A grant will be provided to owners of the commercial buildings affected by the disaster to restore their business premises to operational condition.

A grant of Rs. 500,000/- will be provided to each business building owner who voluntarily opts to receive assistance without a damage assessment.

A grant of up to Rs. 5,000,000/- will be provided to each business building owner who opts to receive assistance after a damage assessment, based on the assessed value of the building.

In addition to the above grants, the following loan facilities have also been provided.

In addition to these grants, the Treasury has introduced a new credit scheme to provide loans for business owners whose enterprises were affected by the disaster, enabling them to restart their operations and meet essential requirements.

Accordingly:

Facilities have been provided for affected businesses to obtain loans ranging from Rs. 250,000 to Rs. 25,000,000 through the banking system at an interest rate of 3%, with a 6-month grace period and repayment over 3 years to restart their operations.

As part of the investment loans for business reconstruction, entrepreneurs whose businesses were damaged can access bank loans of up to Rs. 25 million at an interest rate of 5%, with a 12-month grace period and repayment over 10 years.

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Food safety practices should not be confined to the school curriculum alone, but must become an integral part of the attitude and daily behavioral patterns of the child -PM

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Prime Minister Dr. Harini Amarasuriya stated that food safety practices should not be confined merely to the school curriculum, but should be nurtured as an integral part of a child’s attitudes and behavioral patterns.

The Prime Minister made these remarks today (28) while addressing the National Workshop on Education for Building and Strengthening a Domestic Circular Economy, held at the Galle Face Hotel, Colombo, under the Circular Economy in the Food Sector Project (2024–2027).

Implemented with financial support from the European Union, under the Global Gateway programme in collaboration with the Food and Agriculture Organization of the United Nations (FAO), the workshop aimed to identify challenges and opportunities in integrating circular economy concepts into school education; to develop practical action plans through policymakers, youth and skills development sectors, and formal education stakeholders; and to establish a educational foundation to promote sustainable circular economy practices in the food sector of Sri Lanka by 2027.

The Prime Minister stated:

“Education is not merely about passing examinations and securing employment. True education fosters a sense of responsibility and connection towards society and the environment. At present, what is most important is the concept of the circular economy, which promotes the repeated and efficient use of resources.

This concept is not unfamiliar to our ancestors. I am reminded of my grandmother, who demonstrated remarkable skill in minimizing food waste. From what we discard today such as passion fruit peels, she prepared delicious jams and chutneys. Even the metal lids of milk bottles were not thrown away. Instead, she transformed them into creative household decorations. ’Nothing should be wasted’ was a core philosophy of their way of life.

However, today, women deal with intense time pressures. Balancing employment and childcare responsibilities, food waste such as vegetables or cooked meals left unused in refrigerators has become increasingly common due to time restrictions. This should not be seen as the sole responsibility of women; rather, household responsibilities and labour must be shared collectively within the family”.

The Prime Minister further emphasized that practices such as taking only the required portion of food, cleaning one’s own plate, and developing respect for conserving resources should not remain theoretical lessons, but should be embraced as everyday life practices. She also reaffirmed that the Ministry of Education would extend its full support towards achieving this goal.

The event was attended by Carmen Moreno, Ambassador of the European Union to Sri Lanka and the Maldives; Dr. Johann Hesse, Head of Cooperation of the European Union; FAO Representative Vimlendra Sharan; along with representatives from the National Institute of Education (NIE), and a number of government and non-governmental organizations.

[Prime Minister’s Media Division]

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Cabinet nod for MOU between Sri Lanka and Romania on the cooperation in the Labour Field

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Romania, a country that has maintained diplomatic relationship with Sri Lanka for several decades in various fields, has become an increasingly popular destination among Sri Lankan skilled and semi-skilled Labour categories, especially in the fields of construction, manufacturing, hospitality, and services sectors.

At present, the recruitment of Sri Lankan workers to Romania is carried out by licensed private employment agencies under the
supervision of the Sri Lanka Foreign Employment Bureau. However, since both parties have recognized the need of establishing a more organized and sustainable recruitment method due to increasing  demand, the Cabinet of Ministers has approved the proposal presented by the Minister of Foreign Affairs, Foreign Employment, and Tourism to enter into a Memorandum of Understanding between the Government of the Democratic Socialist Republic of Sri Lanka and the Government of Romania regarding cooperation in the field of the labour sector with the following objectives.

• Establishment of proper mechanism for recruitment and management of workers.
• Promotion of ethical and transparent recruitment practices.
• Protection of rights and welfare of the migrant workers.
• Facilitation of regular discussions between the formal and relevant authorities ofboth countries.
• Improvement of technical cooperation, skills recognition, and capacity building in the labour sector.

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