Liquor licence holders still retain the right to offer discounts and employ sales strategies under the Excise law, despite the National Authority on Tobacco and Alcohol (NATA) issuing a directive to hoteliers to cease the “Happy Hour” promotions under the NATA Act of 2006, Deputy Commissioner and Legal Officer of the Excise Department, Channa Weerakkody, told the Sunday Observer yesterday.
This follows the conflict arising from NATA’s decision, since the Excise Department refrains from intervening in the sales strategies of liquor licence holders unless they violate legal standards or commit revenue offences.
Officials of the National Tourism Development Authority (NTDA) have expressed strong opposition to NATA’s move in that it will adversely affect tourism operations, particularly as the sector is beginning to recover from the impact of the Covid-19 pandemic and economic downturn.
NTDA officials said they took up this matter at the Presidential Secretariat on Tuesday. Officials of the Excise Department, and other stakeholders at the meeting said that President Ranil Wickremesinghe had reportedly raised concerns about NATA’s lack of consultation with stakeholders in the hotel, restaurant, and tourism industries prior to deciding on the implementation of the law.
When asked whether they had implemented the Happy Hour regulations in hotels and restaurants, NATA’s legal officer, Viraj Bandaranayake, declined to comment, stating that they have been instructed by their higher-ups not to discuss it publicly.
Hoteliers criticised NATA’s decision, emphasizing the negative impact it would have on their business operations and the broader tourism industry. NATA’s directive to eliminate “happy hour” promotions in hotels, citing violations of the National Authority on Tobacco and Alcohol Act, No. 27 of 2006, which had ignited a controversy, especially because the concept of happy hour in restaurants is a centuries-old sales-boosting strategy practised worldwide, said Tourism Ministry sources.
Tourism Ministry officials have echoed concerns over NATA’s decision, labelling it as unwise and unnecessary at this juncture.
