Batticaloa District MP Shanakiyan Rasamanickam has asked authorities to investigate claims that tourism businesses have failed to pay a statutory levy to the relevant local council.
Batticaloa District MP Shanakiyan Rasamanickam has called for an immediate investigation into allegations that hotels operating in the Pasikudah tourism zone have failed to pay local-authority taxes for several years.
The MP said the businesses were required to pay a levy equivalent to 1% of their revenue to the relevant local council. The accessible report did not identify the hotels concerned, quantify the alleged arrears or include responses from the businesses or council.
Tourism developments depend on local roads, waste collection, drainage, public health and other municipal services. Persistent non-payment, if established, could weaken the council’s ability to maintain those services and create an unfair advantage over compliant businesses.
Authorities should verify the legal basis of the levy, audit declarations and payments and establish whether any exemptions, disputes or administrative failures are involved. Hotels should be given an opportunity to respond before enforcement findings are published.
Any recovery action should follow due process and distinguish deliberate evasion from calculation errors or unresolved assessments. The local authority should also publish aggregate information on collections, arrears and how tourism-related revenue is used.
The allegation remains unproven unless confirmed through an official audit or legal proceedings.
