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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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Now, Herath dares Udaya to release Easter carnage committee reports

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Vijitha and Udaya

By Rathindra Kuruwita

If Udaya Gammanpila had access to documents on the Easter Sunday attacks that the current administration does not have, he should hand them over to the government without asking the government to release them, Cabinet Spokesman and Minister of Public Security Vijitha Herath said yesterday.

Responding to a query at the Cabinet press briefing, Herath said Gammanpila had been a Cabinet Minister of the government of Gotabaya Rajapaksa and that he should have pressed the former President to release documents pertaining to

the Presidential Commission of Inquiry on the Easter Sunday attacks.

“We feel there is a need to conduct a fresh investigation into the attack. We have announced the commencement of the probe. We will soon issue a report on this,” he said.

On Monday (14) Gammanpila called on the government to release two unpublished committee reports on the Easter Sunday attacks within one week.

Gammapila warned that should the government fail to release the reports, he would publish them online.

“None of these reports are incomplete, and none have gone missing,” he stated.

In June 2023, Wickremesinghe established a Committee of Inquiry to investigate the actions and responses of the intelligence and security services.

Retired Judge A.N.J. de Alwis was tasked with investigating the conduct of the State Intelligence Service (SIS), the Chief of National Intelligence (CNI), and other relevant authorities.

At the time of the Easter Sunday attacks, Senior DIG Nilantha Jayawardena led the SIS, while retired DIG Sisira Mendis served as the CNI, a role previously held by intelligence veteran General Kapila Hendawitharana.

In September, Wickremesinghe appointed a three-member committee to investigate allegations made by Britain’s Channel 4 regarding the alleged involvement of military intelligence in the Easter Sunday attacks. The President’s announcement followed a denial issued by the Ministry of Defence on behalf of the government.

The Committee, chaired by retired Supreme Court Judge Syed Ishrat Imam, also included retired Air Chief Marshal Jayalath Weerakkody, a former Commander of the Sri Lanka Air Force (SLAF), and President’s Counsel Harsha Soza. Senior Assistant Secretary to the President Sarthanjali Maheswaran served as the Commission’s Secretary.

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Ministry Secretary makes contradictory statement

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Indo-Lanka road and rail link:

In the wake of Foreign Minister and Cabinet Spokesperson Vijitha Herath’s declaration that decision on controversial Indian projects would be taken up after the parliamentary election on Nov 14, Environment Secretary Prabath Chandrakeerthi, in an interview with Mint has said the discussions are in the final stages for a $5 billion road-and-rail link between India and Sri Lanka with India set to bear the cost of the stra­tegic project.

This is the first big bilat­eral infra­struc­ture project announced by Sri Lanka since the recent election of President Anura Kumara Dissanayake amidst efforts by New Delhi to counter Chinese influence, according to Mint.

India is Sri Lanka’s largest trade partner and one of the largest foreign direct investment (FDI) contributors. Indian invest­ment in Sri Lanka amounted to about $142 mil­lion in 2021.

“Last month, I participated in one meeting with India in New Delhi, and we are going to establish the highway and railway line connectivity between Rameswaram in India and Trincomalee in Sri Lanka,” B. K. Prabath Chandrakeerthi told Mint. “This is being planned as businessmen in both countries have to pay more and with the road and rail connectivity, both parties can get help because it will help in trade with European and other countries. Indian businessmen can also get some benefits from Sri Lanka as well,” Chandrakeerthi said.

“Last month I participated in one meet­ing with India in New Delhi, and we are going to estab­lish the high­way and railway line connectivity between Rameswaram in India and Trincomalee in Sri Lanka,” B. K. Prabath Chandrakeerthi told Mint. “This is being planned as busi­ness­men in both countries have to pay more and with the road and rail connectivity, both parties can get help because it will help in trade with European and other coun­tries. Indian busi­ness­men can also get some benefits from Sri Lanka as well,” Chandrakeerthi added.

The Sri Lankan government proposed a land bridge between Rameswaram in Tamil Nadu of India and Talaimannar, a village in Mannar Island of Sri Lanka in 2002 and signed an agreement on it.

As per the agree­ment, road and rail bridge links were to be developed, offer­ing eco­nomic benefits to both sides of the Palk Strait. However, after the agreement was signed, the Tamil Nadu government opposed the construction of the land bridge.

As per the agreement, road and rail bridge links were to be developed, offer­ing eco­nomic bene­fits to both sides of the Palk Strait. However, after the agreement was signed, the Tamil Nadu government opposed the construction of the land bridge.

The talks resumed in 2015 when India asked the Asian Devel­op­ment Bank to carry out pre-feasibility study for fin­an­cing a road and rail link between India’s Rameswaram and Sri Lanka’s Talaimannar. But it has been decided to build the rail and road link up to Trincomalee, the offi­cial informed.

There is no land connection between Sri Lanka and India through road or railway. The closest Indian town to Sri Lanka, Dhanushkodi, had a rail­way sta­tion but this was washed out in a cyc­lone in 1964. A short boat ride till 1966 connected the rail­way sta­tions at Talaimannar in Sri Lanka and Dhanushkodi in India.

“The cost of the project is still not final­ized. We have to have more dis­cus­sion about that, but I think it is estim­ated to be nearly $5 billion,” the Lankan official said, and added: “It will entirely be borne by the Indian government. We have to get some approval for environmental clearance.”

He said the project may involve bridges and underwa­ter tun­nels to allow unhindered movement of ships.

Queries sent to the spokespeople and secretaries of Indian road transport and highways, ports, shipping and waterways, railways, external affairs and environment ministries remained unanswered at the time of going to press.

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NDF to focus on farmers’ problems

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NDF leader Rushan Malinda, flanked by Prof. Chamila Liyanage (left) and Avinash Bandara addresses the media

National Democratic Front (NDF) leader entrepreneur Rushan Malinda said that he would be focusing on the difficulties experienced by the farmers, including the human-elephant conflict in the Digamadulla district.

Having handed over nominations for the NDF’s Digamadulla team, Malinda, a pilot by profession, emphasized the pivotal importance of addressing farmers’ woes in all parts of the country. Addressing the media at the National Library and Documentation Services Board recently, Malinda said that NDF contesting under the car symbol handed over nominations in all 22 electoral districts. Acknowledging the Jathika Jana Balawegaya (JJB) taking command of 225-member parliament at the Nov 14 parliamentary election, the NDF leader said that his party intended to perform the responsibilities of the Opposition. NDF’s Propaganda Secretary Prof. Chamila Liyanage who contests Kalutara district said that the Opposition had a great obligation as one of the fiercest critics of previous governments now served as the President.

Former Justice Minister Dr. Wijeyadasa Rajapakse, PC, contested the last presidential election on the NDF ticket. The parliamentarian did so after his failure to secure SLFP nomination

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