Financial Times

Tourist Board denies massive salary hike came from development fund cess
The Sri Lanka Tourist Board (SLTB) has denied industry claims that a sharp hike in the salaries of its staff was funded from a new development fund in which contributions come entirely from the industry.

SLTB's 400-odd staff was given a thumping 75 percent salary increase from August this year. "The 75% salary increase will be funded from revenue from registration, licensing and inspection fees," said S. Kalaiselvam, the board's Director-General, denying money for this exercise came from the cess imposed on the industry.

Kalaiselvam re-assured the trade that the development fund through which the SLTB hopes to raise Rs 200 million per year was by way of a 1% levy enforced on the trade was intended for tourism promotion and marketing and not to pay wage hikes.

Trade sources said according to some estimates the board was expecting much more - Rs 800 million -- from this levy. "Why have the numbers changed?" one source asked. There were doubts on whether the SLTB's other revenue was able to fund the salary hike.

"On a long term basis, they may have to dip into the fund to pay the extra wages," the source said, adding that the legitimacy of using fund money to pay salaries has also become an issue.

Another issue raised by the trade is whether Tourist Board staff would also be entitled to the 70% pay increase promised to government employees in the November budget - on top of the recent 75 percent salary hike.

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