President raises concerns with NATA over ‘Happy Hour’

Tourism authorities have sought AG’s advice on particular section pertaining to NATA Act 

• President had asked why the NATA has tried to enforce the particular law even without consulting industry stakeholders   

By Kurulu Koojana Kariyakarawana   

President Ranil Wickremesinghe has raised concerns with the National Authority on Tobacco and Alcohol (NATA) yesterday about the latter’s moves to enforce law against scrapping hotels’ ‘Happy Hour’, which in turn could result in the country’s growing tourism industry, the Daily Mirror learns.   

A controversial communiqué issued by the NATA last week raised eyebrows of many in the tourism and hospitality industry including its stakeholders like the hoteliers and restaurateurs, tourism authorities as well as the law enforcement agencies like the Excise Department, who spoke not in favour of the move.   

The Daily Mirror with its headlines, ‘Industry stakeholders up in arms against moves to scrap ‘Happy Hour’ reported on Saturday how the sudden and abrupt decision of the NATA to enforce its Section 37(2) of the NATA Act No.27 of 2006 (Amended) would discourage tourism sector and consumers.    The state tourism authorities vowed last week that they would bring the issue to the notice of the President and the concerned parties including the representatives of NATA and Sri Lanka Tourism Development Authority (SLTDA) were summoned to a meeting at the Presidential Secretariat yesterday morning.    What necessities urged the NATA to enforce this law abruptly has been transpired at the meeting and the former had maintained that they were upholding the law against promotion of alcoholic beverages at hotels and restaurants for discounted rates during a special period of the day called the ‘Happy Hour’ to attract more clients and consumers.   

The tourism authorities have stated that the sudden move could directly affect the industry as the hoteliers and restaurateurs are discouraged and worried to run their businesses with harsh laws that would drive away consumers from the trade.    They have pointed that the ‘Happy Hour’ was not meant for the liquor manufacturers or retail dealers to promote and sell their products in wholesale market for discounted rates but applying only for the licensed hoteliers and restaurateurs with the Department of Excise to offer alcoholic beverages to consumers and customers in smaller quantities to retain the crowds during non-peak hours.    President Wickremesinghe had raised concerns that to uplift the ailing economy the development of tourism and entertainment industry is vital and this kind of counterproductive moves could hamper such efforts.    The President had asked why the NATA had tried to enforce the particular law even without consulting industry stakeholders and relevant authorities.    When contacted a senior official of the SLTDA told the Daily Mirror that they have already sought the opinion of the Attorney General regarding the law and how to act in the future.    Meanwhile, an official from the NATA said that the AG’s ruling on this will determine the future actions on the issue.   

Chairman NATA Dr. Alan Ludowyke with the Legal Officer and Chairman SLTDA Priyantha Fernando and officials took part at the yesterday meeting, which was also attended by President’s Chief of Staff Sagala Ratnayake and Presidential Secretary Saman Ekanayake.    A letter dated on May 28th and undersigned by the Chairman NATA Dr. Alan Ludowyke had directed hoteliers to comply with the NATA Act and stated offering discounts on the purchase of alcohol products, such as ‘Happy Hour’ promotions is a punishable offence, that could be subjected to a fine of Rs.50, 000.