SLAITO, ASMET, SLAPCEO, hail Court of Appeal interim order to suspend MRR

• Cite it a historic victory for justice

The Sri Lanka Association of Inbound Tour Operators (SLAITO), the Association of Small and Medium Entrepreneurs in Tourism (ASMET) and The Sri Lanka Association of Professional Conference, Exhibition, and Event Organisers (SLAPCEO) hailed the order given by the Court of Appeal suspending the Minimum Room Rate (MRR) imposition, citing it as a historic victory for justice. 

These industry organisations, collectively representing a significant portion of the tourism industry, have long contended that the imposition of the MRR was unjust and lacked proper consultation with industry stakeholders.

In a landmark decision on Tuesday (21), the Court of Appeal issued interim orders in response to cases CA Writ 691/23 and CA Writ 695/23, effectively suspending the operation of the order published by Extraordinary Gazette No.2349/02 dated 11 September 2023. This Gazette order had imposed a MRR for corporate and free independent tourist hotel rooms within the confines of the Colombo Municipal Council area.

In their argument before the Court of Appeal, the petitioners highlighted that the MRR was implemented without sufficient consultation with key stakeholders in the tourism sector. They emphasised the absence of a rational basis for the rates, pointing out that the Sri Lanka Tourism Development Authority (SLTDA) had not conducted a comprehensive study before imposing the MRR. 

Moreover, concerns were raised that the MRR would unfairly favour certain hotel categories while adversely impacting the industry as a whole whereas significant criticism from various stakeholders underscored the contentious nature of these rates.

In light of the interim orders issued by the Court of Appeal, the MRR will cease to be operative until the final determination of the case. 

“This decision marks a significant milestone in the ongoing efforts to ensure fairness and transparency within the tourism industry,” the joint statement issued noted.

FaiszerMusthapha, PC along with Shaheeda Barrie, TharakaNanayakkara, AmilaPerera and Sierra Amarasiri, appeared for the Petitioners, representing the SLAITO, ASMET and SLAPCEO.