Prime state-run resorts in Sri Lanka up for grabs!
Sri Lanka Tourism authorities are eyeing the possibility of leasing out the resort properties owned by the state citing the losses incurred in maintaining them based on data obtained about eight years back.
Five state-run resorts held by the Sri Lanka Tourism Development Authority (SLTDA) in Bentota, Anuradhapura, Kataragama, Nuwara Eliya and Bandarawela have become the latest subject of interest by the authorities as they want the properties in these prime locations to be run by the private sector and therefore be leased out.
SLTDA Director General G Dhammika Wijayasinghe pointed out that these properties were running at a loss for the last 11 years incurring losses amounting to Rs.123 million.
She explained that this matter had been discussed for some time now and that the decision had received the approval of the SLTDA board, the Ministry Secretary and the Minister.
As a result the board paper submitted to lease out the said properties and assign the relevant officers working in these establishments to other offices of the SLTDA was approved on Wednesday (June 30), she said.
Ms. Wijayasinghe said that they already have 37 rest houses owned by the SLTDA leased out to the private sector. Draft of the Cabinet paper had already been submitted to the Tourism Ministry by the SLTDA and it is likely to be taken up at the next Cabinet meeting.
However, trade union representatives said that the board paper tabled had been submitted as an urgent matter and that resorts need to be leased out for a 30 year period following calling of tenders.
The Joint Trade Union representatives and the Podujana Peramuna Trade Union Chairman Chandima Munasinghe alleged that it is likely to be taken over by a party known to a key politician. During a meeting between the minister and the trade unions, Minister Ranatunga had stated that they were eyeing the Bandarawela and Nuwara Eliya resorts.
Previously the SLTDA Chairperson had told the trade unions that they will be given one year to turnaround the place and run it profitably but did not assist them in the process, Mr. Munasinghe said.
He pointed out that losses claimed by the authorities are also related to costs that were incurred by them due to various calamities like floods, closures that occurred due to the Easter attacks and the subsequent pandemic.
Mr. Munasinghe said that they hope to continue their protest against the leasing out of the said properties to the private sector when it comes before the Cabinet as well.
Mr. Munasinghe said that once when an event was held at the Nuwara Eliya property without seeking prior approval as required, the DG had suddenly sent out a letter dated August 30, 2019 to all resorts stating that no function is to be held at any of the resorts.
No private functions should be conducted in Anuradhapura, Kataragama and Nuwara Eliya Resorts and private functions in Bandarawela should be held in the open ground area; the entre resort could be reserved if required by a particular company or organisation; and limited entertainment conducted if any company or organisation has reserved the entire resort, the letter said.
Mr. Munasinghe noted that the liquor licenses had been withdrawn since 2010 in all of these five properties and though the Bentota property is capable of hosting events it is not being made operational since the private sector is eyeing this property.
“It’s an asset of the state and it should stay with the state,” former Chairman of the Tourist Board Udaya Nanayakkara, who was involved in turning it around, told the Business Times. He pointed out that the blame for the resorts running at a loss was solely with the staff involved in managing the properties.
He noted that during his time he had ensured that these resorts were looked after properly and earned profits and had pointed out to the staff at the time as well that should they not be run well it might end up getting leased out.
Mr. Nanayakkara noted that leasing out could be carried out but it should be subject to a proper transparent manner.