The authorities are planning to extend the tenancy agreements of the operators of some 150 trade stalls at the Dambulla Economic Centre ignoring standard procedures such as calling for tenders and in full contravention of the elections laws, sources in the market said.

It was initially decided to that the traders would have their tenancy renewed on Friday, but the move was put on hold following reports that a group of individuals was planning to notify the Elections Commissioner about the move.

A circular issued by the Elections Commissioner’s office clearly states that such transactions are illegal during an election year. Sources close to the operations in the market told the Sunday Times, that the traders had been covertly promised the continued tenancy of their stalls in early January before the date of the Presidential elections.

These trade stalls whose tenancy contracts expired in April this year continue to do business

Matale Government Agent Gamini Seneviratne said that such a transaction was in breach of election laws but added that no final decision has yet been taken in this regard. It is known that the present tenants of the stalls had been in occupation for the past decade and were refusing to budge despite the fact that their tenancy agreements expired in April this year.

They were later allowed to operate on a temporary basis until the tender procedures were finalized.
It is alleged that nearly half the original tenants had broke their agreements and sub-let their stalls for large sums of money.

At present the monthly rent for a stall is Rs. 12,000, but some of the tenants had reportedly sub-let their premises to others at sums ranging from Rs. 75,000 to Rs. 100,000. However he conceded that the rent for an individual stall was under-valued.

He further said that it was difficult to root out those who had broken the tenancy agreements for lack of proof. “Whenever a spot check is made and an outsider is detected within a stall the tenant would quickly claim that the person was only an employee. So things are very complicated,” Mr. Seneviratne further explained.

According to sources the present set of traders are in a cartel and are also known to be behind price-fixing and hoarding of items with the connivance of the local underworld. Consumer Affairs Ministry Secretary Lalith. R. De Silva said he was not aware of the present developments at the Dambulla Economic Centre adding he would look into the matter.

The stalls were initially set up some 10 years ago to help the medium scale traders in the area who did not have a proper location to carry out their business operations.

But since then big-time mudalalis, backed by regional politicians have muscled their way into the business and are currently said to be monopolizing the operations.