Tourism promotions debt runs into millions

Sri Lanka Tourism P romotion Bure a u (SLTPB) has run into millions of rupees worth of liabilities that have to be paid off with internal funds as the industry awaits a much – needed promotional drive to kick off the sector’s growth.

Sri Lanka Tourism is currently faced with Rs.600 million in unsettled liabilities in addition to Rs.500 million for media contracts signed up with three television compa- nies, Tourism Ministry Secretary Janaka Sugathadasa told the media at a briefing held in Colombo on Thursday to announce the Pacific Asia Travel Association ( PATA) Conference scheduled to take place next month.

Mr. Sugathadasa noted that in total the contract with the three television stations namely Al Jazeera, Bloomberg and Sky News amounted to US$ 700, 000 out of which US$500,000 had to be settled under the current government.

A media campaign was conducted from September 2014 to March 2015, which was said to have had a positive impact on the arrivals to the country, the Secretary said.

He explained that following an audit carried out by the Tourism Ministry it was found that they needed to pay up the balance which was being repeatedly sought by the three television stations.

In addition, Mr. Sugathadasa said that they had to settle a total of Rs.600 million in unsettled liabilities that came out of sponsorships, promotions made to both local and foreign companies.

However, this is currently being studied as they needed to ascertain the legality of the documents available and whether valid contracts were entered into and if the proper tender procedure was carried out.

Tourism Minister John Amaratunga pointed out that they were compelled to settle off the money owed by the previous government due to the publicity campaign that was started by them.

He also noted that due to government bureaucracy in state institutions they were unable to get things underway as fast as they would like things to happen.