Electricity tariff cut will help hotels sustain operations: THASL

The recent reduction in the electricity tariffs is a welcome relief for Sri Lanka’s hotel sector, as it would help in the sustainability of operations, The Hotels Association of Sri Lanka (THASL) said.  
Since 2022, the electricity costs have been the highest operational expense for the hotels, making it challenging for the industry to manage the expenses and offer competitive rates.
Earlier this week, the utilities regulator announced a 26 percent reduction in the electricity tariff for the hotel sector.
“This reduction will help the hotels continue to operate without undue concern. It is particularly beneficial, given the contraction in the arrival growth figures, due to the increased visa fees and the seasonal drop in tourism,” THASL President M. Shanthikumar told Mirror Business.

He commended Power and Energy Minister Kanchana Wijesekara for recognising the importance of tourism to Sri Lanka as a key foreign exchange earner.
“The significance of sustaining the hotel sector, which greatly benefits the community and is a major revenue generator for the country, cannot be overstated. We thank the Power Ministry for hearing our pleas and providing a fair and reasonable solution,” he said.
Shanthikumar also acknowledged the support from the Public Utilities Commission of Sri Lanka, particularly for allowing the hotel industry to present its issues before decision-making.
Meanwhile, Shanthikumar emphasised the need for all government officials, authorities and parliamentarians to understand the value of tourism and its potential to generate substantial dollar revenues for the country.
“Wrong decisions will have a lasting impact on the industry, country and its people. Over 10 percent of the population is dependent on tourism and the multiplier effect of this industry should be recognised by all concerned, especially the government.
It is for this reason that the Asian destinations are now focusing on tourism growth by introducing unprecedented initiatives,” he said.