Saturday Jul 25, 2026
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ITAK MP Shanakiyan Rasamanickam alleges 17 hotels failed to pay mandatory 1% local authority levy for years
Claims non-payment deprived local council of funds for infrastructure and public services
Calls for Auditor General, Tourism Ministry and SLTDA to investigate and recover dues
Raises concerns over transparency and conduct of tourism official in Pasikudah
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ITAK MP Shanakiyan Rasamanickam |
The Government was yesterday urged to investigate allegations that hotels operating in the Pasikudah tourism zone have failed to pay mandatory local authority taxes for several years, with ITAK MP Shanakiyan Rasamanickam claiming the alleged non-compliance has deprived the local council of revenue intended for infrastructure, public services and community development.
Raising the issue in Parliament, Rasamanickam alleged that the 17 hotels operating in Pasikudah had not paid the statutory 1% levy payable to the relevant local authority under the Pradeshiya Sabha Act, despite making payments to the Sri Lanka Tourism Development Authority (SLTDA).
He said the alleged non-payment had resulted in a significant loss of revenue to the local authority and the communities it serves.
Rasamanickam said the revenue should have been available to improve local infrastructure, sanitation, public services and community development.
He also claimed that tourism development in the Northern and Eastern Provinces had received inadequate Budget allocations since 2018 despite the regions’ tourism potential.
The MP noted that many hotel properties in Pasikudah had been leased to major investors under the post-war tourism development program launched during the tenure of former Economic Development Minister Basil Rajapaksa.
He said investors who benefited from those leases must also be held accountable for complying with all applicable tax and legal obligations.
“No investor should be exempt from paying taxes due to the local authority,” he said.
Rasamanickam said he had sought documents and information relating to the alleged tax payments through written requests but had not received a response, describing the lack of transparency as unacceptable.
He also raised concerns regarding an official attached to the SLTDA office in Pasikudah, alleging that the individual had failed to cooperate with requests for information and had acted in the interests of certain hotel operators rather than the Government or the tourism authority.
Rasamanickam called on the Ministry of Tourism, the SLTDA, the Ministry of Local Government, the Auditor General and other relevant authorities to conduct a comprehensive investigation, recover any unpaid taxes and other public revenue, and take legal action against any individual or institution found to have violated the law.
