NATA directive most unlikely to impact on SLTDA registered hotels and tourist restaurants: Chairman 

• SLTDA Chairman Priantha Fernando says circular will be sent out to industry after clearing legal status

By Charumini de Silva

SLTDA Chairman Priantha Fernando said the directive by the National Authority on Tobacco and Alcohol (NATA) has been referred to legal experts to check and express opinion if Section 37(2) of the NATA Act No. 27 of 2006 does not apply to hotels and tourist restaurants. 

“As per our understanding, Section 37 of the NATA Act applies to manufacturers, importers and distributors. Section 37 (3) also creates an exception for the restriction in subsection (2) for trade discounts. As per the above, we feel it does not apply to hotels and tourist restaurants. It does not apply to retailers, hotels or restaurants,” he told the Daily FT. Fernando said that ‘Happy Hour’ promotions are not something new and have been in practice for over half a century. 

SLTDA Chairman affirmed that a letter will be sent out to the industry soon.

On 28 May, NATA Chairman Dr. Alan Ludowyke noted that NATA had received several complaints about hotels offering discounts on alcohol products, including ‘Happy Hour’ promotions. 

The letter mentioned that according to NATA, this practice violates Section 37(2) of the NATA Act No. 27 of 2006. “Violating this section can result in a fine of Rs. 50,000 and each Director of the offending establishment could be deemed guilty of the offense,” it reads. 

Thus, the NATA has directed hotels to comply with all provisions of the NATA Act No. 27 of 2006 (as amended).

The Hotels Association of Sri Lanka (THASL) and other industry stakeholders called for immediate intervention from the relevant authorities to address their concerns and ensure that hotel promotions are not unfairly penalised under the NATA directive.