Hotels face shock treatment from CEB

Sri Lanka’s tourism industry is now faced with another crisis as their electricity bills have skyrocketed and with no revenues to pay they face the likelihood of disconnection.

The cabinet has approved that electricity charges made to the tourism industry be deferred by one year, City Hotels Association President M. Shanthikumar told the Business Times on Tuesday.

He noted that though this has been promised by the government the Ceylon Electricity Board (CEB) has asked them to pay penalties or face disconnection.

It was pointed out that currently the industry and mainly the city hotels are struggling to survive as there are no tourists visiting the country and food and beverage (F&B) is the only mode of revenue to the hotels.

“Our people (hotels) are trying to borrow and pay but it is possible that some might be disconnected,” he said.

It was noted that currently rooms in city hotels are shutdown but the air conditioning has to function to avoid any mildew from forming that could cost more to refurbish once operations commence subsequently.

Mr. Shanthikumar explained they were struggling as even the wage support loan promised to them has not been granted to hoteliers by banks claiming that they have not been informed accordingly.

“We approached all authorities possible but still no action has been taken yet,” he said.

He also pointed out that due to heavy competition there are big discounts offered to entice customers to dine at the respective hotels as a result of which they are unable to make sufficient earnings.

In addition employees currently on contract are not been renewed as some continue to work from home and the hotels have to continue to pay salaries on their own.