The National Handicrafts Board (Laksala) has made a name for itself for purchasing handicrafts from artisans, thus providing an extra income for them and uplifting the endangered Sri Lankan arts and crafts heritage.
No other government institution has been so involved in promoting these craftsmen and women who 
merit as much help as they can get. Many experienced artisans are unable to find buyers for their products. Most of their products had been bought by the National Crafts Council and all the centres formerly were under the National Crafts Council.
The Council purchased outstanding goods, and it all happened successfully. According to the artisans, the buying and selling process ran into trouble after ownership passed to the government. Now accused of misusing resources and money by former chairpersons, Laksala has become a negative influence on traditional arts and crafts, which are to be developed and promoted, are in dire straits due to the negligence of those responsible.
We interviewed several artisans regarding their deteriorating relationship with Laksala.
“Dealing with Laksala is a nightmare”
Pubudu Rukmani -
Reed weaver from Elpitiya
“We are using “Gallehe” reed to make handicrafts as bags, rags, mats, table mats and many other products. “Gallehe” scarcity is a major problem for us. I don’t have to face the material shortage as I have my own reed paddy but my fellow villagers face this difficulty as they have to buy dried reed or buy “Gallehe” roots, each for more than 10 rupees. Due to the lack of materials plus trained workers, and insufficient income to their labour, the future is uncertain. As the new generation does not practice this craft, the future of southern weaving is uncertain”.
When we asked her opinion with regards to alleged financial mismanagement at Laksala she said, “Many artisans find that dealing with Laksala is a bitter experience because they delay payments agonisingly. Some artisans have to wait about 6 months or more just to be paid Rs. 40,000. Payments are not settled at the due time. When we call they never answer the phones and we have to go all the way and remind them. Mostly, they just ask for some more time; this happens to a lot to rural artisans as they don’t fight back hard with companies like this fearing they might get in trouble. A few of them never go asking for late payments and keep supplying goods, thus making it very hard for themselves”, she said.
“These poor people have been engaged in this work even without a proper income. When their products do not even cover the cost, their businesses suffer. The authorities in this industry are completely unaware of the artisans' problems. That’s a dominant cause for not offering a realistic value for their products. Their products are sold for a 1:3 rate; which is profitable for them only. For the last 5 years it has been the same fixed rates for handicrafts though cost of living had gone much higher day by day, and materials are becoming more and more expensive and scarce”.
“Why can’t they understand that we are unable to supply handicrafts at a fixed price every day? Can’t they realise how difficult it is to salvage this dying industry? If artisans have any other alternative, they won’t get engaged in this profitless self employment any more.
She accuses the Laksala management for this precarious situation and laments that many artisans are deeply troubled as a result. She further added that many artisans in Hambantota, Galle and Habaraduwa area have stopped supplying goods for Laksala.
“We have heard many frauds related to Laksala”
A spokeswoman representing the South
Asked about rumoured non payments, the spokeswoman admitted she had worked with Laksala earlier, yet she stopped supplying after realising the delays have become habitual, with years of outstanding payments not settled by Laksala.
“A selected group of artisans are paid well. We have heard many frauds related to Laksala. I am in the field for more than 5 years and there are people in the field for more than 35 years who have worked with Laksala for more than 25 years. However, they have halted supplying artefacts to Laksala”.
They are suggesting that there should be some mechanism to make payments to the artisans in due time. A mask maker accused that Laksala is demanding artisans to lower the prices for handicrafts. She said Laksala management would have difficulties managing their increasingly higher expenses.
“Former chairman is responsible for Sathosa’s failure”
Buddhi Keerthisena – Former President of NCC and Founder of 
Buddhi Batiks
Buddhi Keerthisena said Laksala, which once was the best government souvenir and gift centre is now looking down the barrel. “There were myriad of problems related to Laksala, and many issues have been continuing since many years. Even though Laksala now looks pleasant, a colossal damage has been caused. Laksala management wasn’t doing what was necessary to do. During the period of former Head Anil Koswatte, a colossal amount of money had allegedly been wasted to build new galleries and showrooms. The former chairman wanted a new complex at the National Museum premises which took an extravagant Rs. 500 million for construction. In my opinion, it was unnecessary to have built a new and luxurious Laksala branch there, which is in close proximity to other big galleries at Thunmulla Junction and Fort. Now the Fort Showroom has been closed. All what he wanted to do was nothing but more construction. All these constructions took place when there was a crucial problem of balancing unpaid wages”.
The former chairman reasoned further why Laksala has lost its fame.“Willy Gamage, then secretary to the minister, approved everything without considering the consequences. The higher positions were paid huge salaries and allowances approximately one million for each ranks. But selling rates were increased by 300% for crafts, in which the profit margin was increased with zero benefits to the craftsmen. These days, corruption cases are heard in Bribery Commissions but the process is lackadaisical”.
“Laksala was granted Rs.100 million in 2013 to pay craftsmen what was due to them as informed by the then president and secretary – Ministry of Finance, and in return we were given Rs. 200 million to 
pay before Sinhala and Tamil New Year. I was personally involved with this but craftsmen were not given even Rs. 50 million. There was no suitable market for craftsmen either. But they think Laksala is their own property. Even the government doesn’t pay heed to the problems faced by Laksala. Due to the injustice experienced when dealing with Laksala, many artisans abandon traditional craft-making. Once I received complaints from artisans about former Chairman Koswatte saying that imported Chinese goods were sold in Laksala, to which I intervened and solved. Former MP Basil Rajapaksa should take responsibility for this because he appointed Anil Koswatte as the Chairman and the latter used his power to take undue advantages”.
Further addressing the issue, Mr. Keerthisena said that the government should provide Rs.100 mn to settle the outstanding dues and the relevant chairman should be held responsible for this. The responsible authorities should have sufficient knowledge in traditional crafts and the procedure of artisans have to go through. Government should educate the artisans to protect it. If the responsible officials make “Laksala” a brand, then it would be easier to increase the revenue.
“I increased sales by 50%
Ali Ahlam - CEO of Laksala
“I was appointed as the CEO of Laksala in January 2016. At the time, there was 400 million 
outstanding to craftsmen, accumulated throughout 2 to 3 years. After my taking over, I increased sales by 50% and earned 200 million, settled half of the 400 million outstanding within a year. Now we have only 125 million to settle the remaining outstanding to craftsmen. By the end of this year, we are hoping to clear the entire outstanding. There is a 600 million Bank loan that we are planning to pay monthly through our sole income”.
Responding to artisans’ accusations, CEO Ahlam accepted that a few people could have been disappointed over the incidents occurred in the recent past. He clarified that 80% of previous suppliers are still dealing with them after the renovation. He also mentioned about the price revisions.
“We held a meeting with our existing suppliers and we are in the process of linking with our resources. Although we were criticised for the delays, we are now paying within 16 days after every purchase; guaranteeing the delays would not be repeated in the future and we are certain that our suppliers will rejoin.”
According to him, Laksala has given prominence to the local market, where the demand for local hand-loom is growing rapidly. 90% of Laksala customers are foreigners.
“We are in the positive trend and I am delighted with that. Our sales last month notched up Rs.79 million. In March this year, we recorded the highest sale around Rs. 80 to 81 million. We even held an “Avurudu campaign with a local Bank and offered 30% discount for Credit Cards” said Mr. Ahlam. He said that young people are coming up with totally different ideas, giving as an example the very sustainable Banana slippers made by Banana fibre while 50% of their products consisted of art and craft products.
“A few weeks ago, a female showed up with a doll which was rejected and turned down many times before. But we bought her doll. In any case, our mandate is to develop SME (Small and Medium-sized Enterprises) section and we are trying to advance SMEs, especially giving priority to empowering women.”
“Have to bribe officers to get payment”
J. Dean, - Owner,
Kandy Fabrics
J. Dean was once a supplier to Laksala and consequently, he became a member of the Director Board in the National Crafts Council (NCC) and positioned as a member in Chamber of Commerce.
“I last dealt with Laksala 20 years ago. I am doing a fabrics factory at present and I have no issues selling my products, as I am doing this on a large scale. Laksala has made the situation worse by now. But 20 years ago, it was not much different. Laksala used to give large scale orders and they used profits to pay wages for their staff. If we need anything to be done, we have to bribe all the officials from the cheque writing officer to the cheque issuing officer”.
“The main reason behind these ill deeds as there is no law enforcement in Sri Lanka convincing how to protect this traditional trade. There are no rights and responsibilities. People in higher positions are misusing public funds and enjoying themselves. Poor artisans are not even paid a decent price for their work. I think any solution to this problem should be implemented through proper laws and rules; and if responsible officials are not doing their duty, there should be a system to remove them. As a member of the Chamber of Commerce, I have travelled to many countries and have seen how traditional industries are treated and safeguarded. Sri Lanka is the only country where a rich heritage of traditional industries are abandoned and destroyed day by day. It is difficult to make artefacts as labourers are scarce day by day. Traditional handicraft-making is dying slowly”.
“I was not paid a cent”
A traditional weaver, who has worked for Laksala nearly two years
“I have heard that Laksala is in debt to people like us. When I first supplied artefacts to Laksala, they promised to deposit the payment in the Bank, but I was not paid a cent! I went twice to meet and remind them to pay me and they consider us as an irritation. Or, they value our goods at a lower rate. Once I took a large crotchet table cloth priced at Rs. 2,300, nevertheless, their buying price was Rs.1,800. And once more when I offered them with a sample for Rs. 750 but they priced it for Rs. 600. Then I discontinued business with Laksala.”
“We partake in craft exhibitions to reach customers. But unfair practices take place when choosing handicrafts for exhibitions but due to the inefficiency of the judges to choose the best products. I also buy handicrafts from the rural community and pay them on time as I know the difficulties the poor women are undergoing to find extra income. I exhibit artefacts in my shop and I am happy to say that we have a fairly good customer base,” she said.
Can not comment as a case is pending
When we tried to contact the Minister of Industry and Commerce Rishad Bathiudeen, we were told officially no details could be given about the monetary fraud in Laksala, as the case is in progress at the Bribery and Corruption Commission
Laksala, the establishment
Laksala is the only State-owned gift and souvenir enterprise in Sri Lanka which was established under the NCC, Art and allied institution Act No. 35 of 1982. Laksala is a State Corporation named after Sri Lanka Handicrafts Development Board. Laksala was established to support the traditional craftsmen by registering artisans in Laksala and buying artefacts covering 28 fields as decorative items, toys, natural reed productions, bamboo crafts, weaved mats, masks, wood carvings, crotchet weaving, clay moulds etc. Now the product area covers beautifully packaged Tea, spices, colourful batik ware, traditional gem & jewellery and a vast collection of art and crafts. Their vision is to be the leader in the gift and souvenir market in Sri Lanka. Their mission is to become a commercially viable, socially responsible marketing organisation -- which creates opportunities for rural crafts to cater to mega markets, thereby enhancing the gift and souvenir category and adding value to tourism sector.
The 1982 gazette includes the intension of the NCC Board as developing, broadening and promoting the craft productions in Sri Lanka, selling and promoting local craft productions -- locally and internationally -- supporting above particulars. Currently there are 13 Laksala branches, the head office in Thunmulla Junction, Colombo, the National Museum premises, the Race Course, Katunayake Airport, Galle, the two showrooms at the Welipenna exchange in Southern express-way, Pinnawala, Peradeniya, Kandy, Katubedda, Battaramulla and Fort. The Board of Directors of Laksala consists of six members. At present, there are 12,400 craftsmen who are registered with Laksala.
“Former chairman destroyed Laksala” Nandasena Kalehewatta, former member of NCC,
“Former chairman Anil Koswatta destroyed Laksala. The fiasco started in 2012, and at that time, there were 4,300 artisans supplying goods to Laksala. When Anil Koswatte became chairman, there were not more than 2,000 artisans supplying. Actually there large scale businessmen were dealing with an Laksala and they were paid in full and on time, while traditional craftsmen are paid only with advance payment...” He said. “Laksala was well used by the chairman and other officials. Chairman Anil Koswatte, Assistant Director Lakshmi Perera, Director of Finance Rohini Perera, Marketing Director Kelum Jayawardhena and former Secretary to the ministry Willy Gamage. They even made fraudulent documents and indulged in fraud,” the former Director charged.
“Another issue with this was that heads in NCC and National Design Centre as well as Minister of Commerce and Finance did quite understand the values behind these traditional artefacts in Sri Lanka.
Talking about what happened to Laksala, Mr. Kalehewatta noted that Laksala branch in Fort at Millers building is mortgaged to Bank of Ceylon, and the only wooden elevator in South Asia in it was dismantled. “There were some excellent chairpersons in the Laksala history, such as the calibre of C. Gunasingham, Brigadier Ramanayaka, Subashinghe and Alex Ellawala. .
“National Design Centre offered designs and support for artisans, NCC to train artisans or give professional knowledge. Laksala is expected to market artisans’ products and grant loan facilities. Especially, Laksala is bound to buy products from local and traditional artisans. It is a must to appoint some responsible and knowledgeable personnel who have sound knowledge since it is a valuable heritage,” critiqued Mr. Kalehewatta. “In spite of accusations having been proved, why hesitate to punish the accused? “ Mr. Kalehewatta queried.
