The government is planning to introduce a US$ 20 levy per bed on all five star hotels in Colombo in a bid to deter under pricing.
President Mahinda Rajapaksa delivering the 2011 Budget in Parliament yesterday said earnings from tourism showed a moderate increase despite the strong revival in arrivals. "This is largely because the industry as a whole is underpriced," he said.The government would charge the US$ 20 levy per room where the rate is below US$ 125 per night from next January.
The government proposes to reduce income tax on all tourism related businesses from 15 percent to 12 percent.
