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 the statutory 1% tax due to the local authority under the Pradeshiya Sabha Act for several years.

Speaking in Parliament, Shanakiyan said Pasikudah is home to 17 hotels, which reportedly make payments to the Sri Lanka Tourism Development Authority (SLTDA) but have allegedly neglected their mandatory contributions to the local council. 

Rasamanickam warned that if proven, this represents a substantial loss of public funds that should have been used for local infrastructure, sanitation, public services, and community development.

The MP noted that these concerns arise amid continued neglect of tourism development in the Northern and Eastern Provinces, where adequate budgetary allocations have not been made since 2018 despite significant tourism potential. 

Many of the hotel properties in Pasikudah were leased to major investors under the post‑war tourism programme initiated by then Minister of Economic Development Basil Rajapaksa, and Rasamanickam stressed that such investors must be held accountable for all tax and legal obligations.

He further alleged that an official named Mahir, attached to the SLTDA office in Pasikudah for about 12 years, has consistently failed to cooperate with requests for information and instead acted in the interests of certain hotel operators. These allegations, he said, warrant an independent inquiry.

Rasamanickam charged that the Government has failed to collect revenue that rightfully belongs to the local authority, depriving the public of funds generated from hotel operations. 

He urged the Ministry of Tourism, SLTDA, Ministry of Local Government, the Auditor General, and other relevant authorities to conduct a comprehensive investigation, recover unpaid taxes, and take legal action against any individual or institution found to have violated the law. (Newswire)

Pasikudah Hotels Have Not Paid Local Council Tax for Years: Immediate Investigation Urgently Needed

It is a matter of serious concern that hotels operating in the Pasikudah tourism zone have allegedly failed to pay the statutory 1% tax due to the relevant local authority under…

— Shanakiyan Rajaputhiran Rasamanickam (@ShanakiyanR) July 24, 2026

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