SLCB under scrutiny as AG reveals unmet objectives and irregularities

By Nishel Fernando

The Sri Lanka Convention Bureau (SLCB) has come under fire after Auditor General’s report for the fiscal year 2023 revealed significant shortcomings in meeting its mandated objectives and a series of financial and administrative irregularities. 

The findings, detailed in the Bureau’s recently published annual report, raise concerns about its governance and operational effectiveness in promoting Sri Lanka as a premier MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism destination.

According to the audit, the SLCB has failed to fulfill several key objectives outlined in the Tourism Act No. 38 of 2005. Specifically, the Bureau had not fully implemented its core mandate to provide a common policy for the coordinated development and marketing of Sri Lanka for MICE tourism by the end of the year. 

Furthermore, the objectives of prescribing professional standards for the industry and providing guidance to the Promotion Bureau to market Sri Lanka as a tourist destination were also found to be not fully met.

The Auditor General’s report also highlighted the lack of a succession plan, a requirement for State-Owned Enterprises since November 2021. 

Compounding the governance concerns, the Bureau’s strategic plan for 2020-2023 had not been updated annually and submitted to the Treasury as required.

Several financial irregularities were also brought to light. The lease agreement for the Bureau’s office expired in December 2022, and subsequent rental payments totalling over Rs. 2.3 million were made without a renewed agreement or proper approval. 

Additionally, the Bureau has paid over Rs. 11.5 million for the repair of a jeep involved in a 2019 accident without a formal agreement or cost-benefit analysis prior to the decision.

These findings stand in contrast to the ambitious goals outlined by the SLCB in the same annual report. Then Chairman Thisum Jayasuriya stated the Bureau’s aim was to increase MICE tourism  contribution to total arrivals from the current 10-12 percent up to 20 percent by 2030. The report also detailed numerous promotional activities in 2023, including MICE expos in Colombo and Jaffna, and participation in international travel marts in India and Germany.

Despite these promotional efforts, the Auditor General’s report points to fundamental gaps in the SLCB’s strategic direction and adherence to regulatory frameworks. 

The Bureau’s vision is “to position Sri Lanka as Asia’s most sought-after venue for MICE tourism”. However, the audit suggests that significant internal course correction is needed to achieve this goal and ensure public resources are utilised effectively and transparently.

The Sri Lanka Convention Bureau was established in 1987 and later incorporated as a statutory body under the Tourism Act of 2005 to promote the country as a MICE destination. It operates with an annual budget funded by the Tourism Development Levy and the Embarkation Tax.