The Laksala handicraft boutique chain owned by the Sri Lanka Handicrafts Board has taken measures to regularise the commissions being paid to registered tour guides and tour operators.
In a hurriedly conducted board meeting of Laksala on Friday 6 , a resolution was presented to pay a percentage of its sales as promotional payments to registered tour guides and tour operators in line with industry norms.
The board meeting was convened without giving notice three days prior to the meeting and it was illegal in accordance with administrative regulations a legal expert said.
This practice of paying promotional expenses has been a standard practice at Laksala since inception and currently the amount works out to around 10-12% of our sales, Laksala Chairman, Muhammed Hamza said.
In oRder to promote the sale and marketing of handicrafts of Sri Lanka both in Sri Lanka and abroad” Laksala is empowered to make incidental payments that may include payments to registered tour operators and guides. Laksala does not pay any broker commissions, he added.
Making a certain payment to tour guides and tour operators for purchases from Laksala shops by tourists who were introduced by them to these shops cannot be classified as promotional expenses under the financial regulations.
in any case , payment of even 10 to 12 percent of sales as promotional fee to third party for bringing tourists and locals to state run laksala shops motivating them to purchase items is a violation of government AR&FR .
Any payment to outsiders (tour guides and tour operators) for purchases made my tourists in these shops amounting to paying a commission for third party.
The practice of paying commission classifying it as promotional expenses under the heading of incidental expenses is a violation of FR135, 136,137,138, and 139.
Further a letter dated 26-082019 sent to Laksala Chairman by Director (HR&Admin) of Sri Lanka Handicrafts Board clarifying this matter has clearly indicated in its heading that this was a payment of commission and no where it has been stated as promotional expenses.
Making or obtaining a payment as a commission or promotional fee to a third party or aiding and abetting such transactions by officials of a state institution is also an offence under the section 20 and subsections (1) (VI) and(VII) of the Bribery Act.
(LI)