News

Hoteliers call for state assistance

Published

4 years ago

2021/11/29

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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Southern Expressway land leased to Rajapaksa allies for Rs. 10,000 – Minister

Published

14 hours ago

2025/06/21

Thilina Walpola

Bimal Rathnayake

Leader of the House and Transport Minister Bimal Rathnayake told Parliament yesterday that a service area on the Southern Expressway had been leased for 99 years to individuals linked to the Rajapaksa family for just Rs. 10,000.

Responding to questions raised by Opposition MPs Rohitha Abeygunawardena and Ajith P. Perera, Minister Rathnayake also claimed that the Rajapaksa associates had obstructed the construction of several other approved service areas along the expressway.

He said that the Southern Expressway project suffered from serious irregularities, including deviations from feasibility studies, which he said led to the wastage of billions of rupees.

Highlighting specific discrepancies, the Minister pointed to the construction of two interchanges that were not part of the original expressway blueprint.

“One is at Kapuduwa, just 5 km from Godagama in Matara, serving only traffic to and from Colombo. The other is at Bedigama, 6 km from Beliatta,” he said, adding that each interchange cost over Rs. 10 million to build.

By Saman Indrajith

News

Hike in bus fares if Israel-Iran conflict results in higher fuel prices

Published

14 hours ago

2025/06/21

Thilina Walpola

Gemunu

A hike in private bus fares could be on the cards next month if global fuel prices continue to climb as a result of the ongoing Israel-Iran conflict, according to Lanka Private Bus Owners’ Association (LPBOA) President, Gemunu Wijeratne.

Wijeratne told The Island yesterday (20), that the annual bus fare revision, scheduled for the 1st of next month, could lead to a revision in fares, should fuel prices in the global market remain on an upward trajectory.

He said that while fuel prices are already high due to the prevailing geopolitical tensions, the Association is cautious about pushing for a fare increase immediately, warning that such a move could adversely affect the industry in the current economic climate.

However, Wijeratne emphasised that if international fuel prices stabilise and remain at their present levels, a fare hike may not be necessary.

“The situation is being closely monitored. We hope that the global market stabilises, but if fuel prices continue to rise, we will have no choice but to adjust fares accordingly,” he added.

By Pradeep Prasanna Samarakoon ✍️

News

Committee probing alleged abuse of power by IGP approves inclusion of two additional witnesses, currently abroad

Published

14 hours ago

2025/06/21

Thilina Walpola

The Committee of Inquiry investigating allegations of gross abuse of power by IGP Deshabandu Tennakoon convened for the fourth consecutive day on Thursday, under the Chairmanship of Supreme Court Justice Preethi Padman Surasena. The Committee also includes Justice W.M.N.P. Iddawala and E.W.M. Lalith Ekanayake, Chairman of the National Police Commission, the Parliament Media Division said.

It said that as of Thursday, 28 prosecution witnesses have testified before the Committee, including seven on that day (Thursday).

The Committee has also approved the inclusion of two additional witnesses, currently abroad on official duty, to testify after their return to the country on 26 June. This request was submitted by Additional Solicitor General and President’s Counsel Dileepa Peiris, and Deputy Solicitor General Rajitha Perera, representing the Attorney General’s Department.

Attorney-at-Law R.S. Weerawikrama, appearing on behalf of IGP Tennakoon, gave his consent for the two witnesses to be summoned for examination and cross-examination upon their return. The Committee granted the request.

Although initially scheduled to reconvene yesterday (20), proceedings have been postponed to Monday, 23 June, following a request by Weerawikrama to allow additional time to prepare the IGP’s defence. With the Attorney General’s Department not objecting, the Committee approved the postponement.

The next sessions will be held from 23 to 25 June, commencing at 9:30 a.m. daily. During this period, 15 witnesses are expected to testify on behalf of the Respondent IGP.The Committee will reconvene again at 2:00 p.m. on Thursday, 26June, following the conclusion of the defense’s witness testimonies.