News
Lottery ticket sellers up in arms against price increase
Though lottery dealers and agents are threatening to stop selling tickets, the Government is going ahead with the decision to increase the price of lottery tickets from tomorrow (2).
Currently, there are 300,000 street lottery sellers including disabled persons. Last week, lottery agents threatened to stop selling tickets if the price was increased. They say that, even at the current rate of Rs 20, they find it difficult to sell tickets.
National Lotteries Board (NLB) Chairperson Shyamala Perera told the Sunday Times that the price increase was a 2017 Budget proposal. “We too are aware that sales may drop and consequently, our revenue may also reduce. With the increase of Rs10, the NLB has to pay Rs 5 per ticket, to the Treasury as excise duty,” she revealed.
“We give many benefits to the lottery sellers, including life insurance cover, promotional work and materials. We are also accept return of unsold tickets. Currently, dealers are paid Rs 3.50 as sales commission per ticket, which will become Rs 4, with the price increase, and agents will be paid cents 30 per ticket. We spend 50% of the total revenue as prizes, while 16% goes to the consolidated fund. Another 15% is paid as Value Added Tax (VAT).”
Meanwhile, a spokesperson for the All Ceylon Lottery Sellers’ Association said, “Even at the rate of Rs 20, we find it difficult to sell the tickets, and are currently paying Rs 2.50 per ticket to street sellers. Hence, we end up with only Re1 as sales commission. With that commission, we have to pay our employees and cover other overheads. The price increase will have a negative effect on the entire lottery industry. We have urged the President to intervene and reverse this decision on the price increase,” he said.