Rs. 2.5 Bn tea promo funds move to Treasury
The Sri Lanka Tea Board (SLTB) is set to, reluctantly, pack off Rs.2.5 billion to the Treasury as part of government plans to bridge the budget deficit using excess monies held by departments.
SLTB officials say they were in the dark over recent government moves until it was announced as part of the budget proposals to transfer excess monies held by state departments to the Treasury to bridge the budget deficit.
However, officials were hoping that this payment would not be transferred before consultations with Plantations Minister Lakshman Kiriella.
During the mini-budget speech in January Finance Minister Ravi Karunanayaka proposed to extract monies held by public institutions like The Telecommunications Regulatory Commission (TRC), National Lotteries Board (NLB), LITRO Gas Company, Sri Lanka Tea Board, Rakna Arakshaka Lanka Limited (RALL) amounting to Rs.25 billion as non tax revenues this year.
SLTB Director General Anura Siriwardena told the Business Times that the Rs.2.5 billion from the existing promotional funds was not yet transferred to the Treasury as it was only a budget proposal.
He noted that they were yet to be officially informed of such a transfer and that these promotional funds collected from the industry since 2010 by making a special levy of Rs.3.50 per kilo of tea from exporters was with the SLTB.
The organisation’s new Chairman Gamini Wijayaratne who assumed duties last week, said the monies from the promotional funds were likely to be transferred and such a transfer was learnt of only by Monday in the budget proposals.
However, he noted that they would not allow for such a transfer and Mr. Wijayaratne had appraised the minister in this regard.
In the meantime, the tea industry raised concerns over possible moves by the government to bridge its budget deficit during their industry meet on Thursday.
“We are planning to meet the Minister regarding the transfer of promotional funds to the Treasury,” Tea Traders Association Chairman Anslem Perera said.
He noted that the cess fund that contained monies collected from the industry was to be used for tea promotions worldwide that have dragged on during the last regime.
Mr. Perera explained that the industry contributed with Rs.3.50 per kilo for promotions and the cess fund collection held by the Treasury of Rs.6 per kilo on bulk tea and another Rs.4 per kilo.
Meanwhile, the Tea Board is planning on obtaining approval from cabinet next week for its global campaign costing approximately Rs.2.5 billion.
The campaign would take into consideration the proposals submitted by a public relations firm and an advertising firm.