THE Sri Lankan government has introduced a slew of initiatives to encourage the growth of tourism, especially MICE activities in the country.
Finance minister Ravi Karunanayake, presenting the national budget for 2016 last week, said a 7,000-seat convention centre will be built in capital Colombo, the country’s largest in terms of capacity when completed.
The government also abandoned plans to introduce a controversial tax structure that would have doubled tourism taxation, following protests from the industry. Import taxes on garments, shoes, electronics and other accessories were also reduced to encourage spending.
“It’s a very positive budget for all business sectors,” noted Hiran Cooray, chairman of The Tourism Hotels Association of Sri Lanka (THASL).
Srilal Miththapala, leisure director, Laugfs Holdings, said the biggest relief came from the abandonment of the tax hike.
He welcomed the focus on MICE and also the regulation of the tax-evading SME sector. The government said 60 per cent of accommodation units available in Sri Lanka are unregulated and thus avoids being taxed.
A five-year, 50 per cent tax break for companies focusing on MICE activities was also introduced.
