Sri Lanka tourism grapples to raise like a phoenix from the ashes

Sri Lanka's tourism industry is grappling to raise like a phoenix from the ashes after the Easter Sunday terror attacks with financial assistance and moratorium given to the hotels and others in the hospitality industry.

But the Ministry of Tourism Development has failed even to utilize the money allocated for tourism development projects in the last few years, industry stalwarts complained.

They added that no substantial financial assistance or support could be expected from the ministry for tourism development in the coming months as well.

For the purpose of development of tourist attractions, provisions of RLKR 568 million had been made to the Ministry of Tourism Development and Christian Religious Affairs during the year under review, Government audit inspection revealed.

Out of that, a sum of LKR 162.3 million or 28.5 per cent of the total provisions only had been utilized.

Although provisions amounting to LKR 25 million had been made for the development of tourism villages during the year under review, a sum of LKR 556,828 only had been utilized by the end of 2017/2018 period.

Policies or a Guidelines relating to the execution of this project had not been prepared and approved before the commencement of this project.

In terms of Subsection 2(b) of the Finance Act, No.25 of 2003, a levy should be charged for every ticket issued in respect of a passenger embarking a ship leaving Sri Lanka and a part thereof should be remitted to Sri Lanka Tourism Development Authority.

Nevertheless, levy had not been so charged from the passengers who had left in the above manner and remitted to the Authority.

Although 27565 passengers had left in the year 2017, action had not been taken to charge the Embankment Levy of LKR 6.41 million recoverable to the Fund at US$.1.66 per passenger.

Deviating from the Government Procurement Guidelines Provisions amounting to Rs.35 million had been made in respect of International French Tourism Trade Fair held in France from 16 to 26 September 2017.

For the construction of trade stalls and obtaining a dancing group, a sum of LKR 8.24 million and LKR 1.03 million had been spent respectively. Action in terms of the provisions in the Government Procurement Guidelines had not been taken in the selection of relevant suppliers, the audit report observed.