Privatising Nuwara Eliya Racecourse: A case of changing horses in the middle of a race!

Central Employees Union of the Sugathadasa Stadium alleges that plans are underway to privatise the Nuwara Eliya racecourse

• Contradictions galore over Nuwara Eliya racecourse administration
• Central Employees Union of the Sugathadasa Stadium alleges that plans are underway to privatise the Nuwara Eliya racecourse
• It’s reported that RTC has taken over administrative powers of Racecourse and deployed eight security personnel at the facility
• The Daily Mirror learns that the racecourse now comes under the purview of the Divisional Secretariat 
• Plans are underway to build a high altitude sports complex at the Racecourse 
• RTF maintains that the government hasn’t paid a single penny towards the maintenance of the racecourse

The Sugathadasa National Sports Complex Authority (SNSCA) alleges that Royal Turf Club (RTC) is yet to pay a sum of Rs. 40 million as maintenance dues over the past few years. The 82-acre expanse of land- located in the heart of Nuwara Eliya- is one of the city’s main attractions. However, since 2012, this land came under the purview of the Sugathadasa National Sports Complex Authority where the latter was responsible for its maintenance. But in addition to the failure of paying outstanding dues, the Central Employees Union of the Sugathadasa Stadium alleges that plans are underway to privatise the Nuwara Eliya racecourse.

“However, President Ranil Wickremesinghe recently instructed the Authority to hand it over to the Divisional Secretary, Nuwara Eliya,” claimed N. G Karunathilaka, Secretary of the Central Employees’ Union of the Sugathadasa Stadium. “Due to the lack of funds, the land has neither been maintained nor developed. But speculation is rife whether the Divisional Secretary would pass the project back to the Turf Club for development purposes. However, if such a transaction takes place the horse races would be privatised. The loss to the Authority is that the Authority will not be able to retrieve the Rs. 40 million from the Turf Club. The employees working at the Racecourse will have to come to Colombo in search of jobs. A government land will become the private property of one individual,” said Karunathilaka. 

Speculation is rife whether the Divisional Secretary would pass the project back to the Turf Club for development purposes. However, if such a transaction takes place the horse races would be privatised. The loss to the Authority is that the Authority will not be able to retrieve the Rs. 40 million from the Turf Club

- N. G. Karunathilaka, Secretary Central Employees’ Union, Sugathadasa Stadium

As means of handing over the inventory of Royal Turf Club, a seven-member committee had later been appointed. However, a union official, who was present at the time of handing over the items to the Divisional Secretary, claimed that around 90% of the items were missing. “It looks like these items have been misplaced. They include equipment used for horse races and many more. Some are valuable and some aren’t. The Divisional Secretary (DS) was also present when we handed over the items and we said that we are unable to hand over the items since all of them weren’t available. The DS said that they will receive whatever the items that are available and draft a report mentioning the available items. But we have to provide reasons as to why the items have been misplaced and for that we need to obtain information from Royal Turf Club.  However it’s suspicious as to why the DS said that he will accept whatever the items that are available without obtaining a proper reasoning from RTC. Following these developments the RTC has taken over the administrative power of this facility and deployed eight security personnel at the Racecourse. Now people have to obtain permission from the Club prior to visiting the Racecourse. The DS needs to obtain recommendations from the committee. But it now looks like there are attempts underway to privatise the Nuwara Eliya Racecourse,” he said. 
Following the recent developments, the Daily Mirror learned that the racecourse is now coming under the purview of the Divisional Secretariat and that plans are underway to build a high altitude sports complex at the venue. 

When inquired Nuwara Eliya Divisional Secretary D. A P Dhanansuriya said that the Nuwara Eliya racecourse which initially came under the purview of the Sports Ministry has once again

been taken over by the government. “The payment for maintenance is included in an agreement between the Sugathadasa National Sports Complex Authority and Royal Turf Club. With regards to the inventory, these items were used by Royal Turf Club and they are not government property.” When asked if plans are underway to build a high altitude sports complex Dhanansuriya said that there’s a long term development plan for Nuwara Eliya, but that nothing had been finalised. 

The payment for maintenance is included in an agreement between the Sugathadasa National Sports Complex Authority and Royal Turf Club

- D. A P. Dhanansuriya Nuwara Eliya Divisional Secretary

RTC denies allegations

However a senior official at Royal Turf Club- who spoke on conditions of anonymity- denied allegations made by the Central Employees Union of the Sugathadasa Stadium. “Ever since Royal Turf Club was registered under the Companies Act in 2014 and started conducting races there, the government hasn’t paid a single penny for the maintenance of the racecourse. Even the security hut for the security personnel was constructed by RTC. RTC developed the horse stables, the VIP lounge, grandstand and the restoration of the colonial building. When Navin Dissanayake served as the Sports Minister, the racecourse was handed over to RTC on a two year lease. But we requested for a long-term lease. During Dayasiri Jayasekara’s tenure we got a 10-year lease, but it was reduced to five years when Harin Fernando assumed duties as the subject minister. We then wrote to the Ministry and raised concerns on reducing the term of the lease. We spent Rs. 200 million on developing the racecourse and the investors and horse owners weren’t happy with the turn of events. However the long-term lease was subsequently cancelled through a cabinet decision and RTC thought that the government should then refund the money.

“The RTC lawyers decided that it was unjust enrichment and thereafter the Sugathadasa Stadium authority and the Ministry went to the Attorney General’s department. The government’s attempts to attract a foreign investor to build a high altitude training centre weren’t successful and the government didn’t have the money to develop it either. However, RTC started making a monthly payment of Rs. 50,000 during the racing season. The RTC has paid up to the last race that concluded and the documents are available as proof. When a payment is being made

the Sugathadasa Authority issues a receipt, but from time to time they send letters saying that RTC has to pay the arrears. However the stables are owned by individual horse owners who pay the monthly rentals for water and electricity directly to the SNSCA,” the official said.

We spent Rs. 200 million on developing the racecourse and the investors and horse owners weren’t happy with the turn of events. However the long-term lease was subsequently cancelled through a cabinet decision and RTC thought that the government should then refund the money

- Senior official at Royal Turf Club

“During the April season there is a carnival and around Rs. 3-4 million is generated (perhaps it could be more now). We don’t take this money either. However, when Ranil Wickremesinghe became President he had a development plan for Nuwara Eliya. The government affirmed that the property is not maintained properly and took it over from the Sports Ministry. Right now it is under the purview of the Nuwara Eliya Divisional Secretary who had subsequently handed it over to the Lands Commissioner General. As a result the security personnel deployed by the SNSCA were withdrawn and this is why the union members have worked up. But the allegation that we haven’t paid Rs. 40 million is a blatant lie because in that case they should have filed legal action. In fact, we are not the lessee.

“We believe that the government is not going to sell the property to the private sector. But it has to be developed to the best standard. However RTC takes the stance that it should have a stake if the government is going to conduct races. This is a historical land and we have invested on horse ambulances, an equine hospital and everything was gradually developed to this level. Therefore we believe that the government should jointly develop the racecourse together with the private sector. But we haven’t taken over any government property. This is the only racecourse left in Sri Lanka. Therefore we hope and pray that the incumbent President will attract foreign investors to develop sports tourism in the country,” the Royal Turf Club official said in conclusion.