The Hotels Association of Sri Lanka vs Colombo Municipal Council and others – CA/ WRIT/ 75/ 2017-2025

In the case between The Hotels Association of Sri Lanka (Plaintiff) and the Colombo Municipal Council along with certain municipal officials (Defendants), the issue addressed was whether the Municipal Council was legally empowered to impose and levy a license duty on hotels amounting to one per cent of their total takings, as set forth in Gazette Notification P3. The holding established that the Municipal Council’s actions were within its statutory powers and that the method of levying the license duty was lawful under the Municipal Councils Ordinance. The principle reaffirmed was that interpretation of licensing and levying duties must adhere to both general and specific statutory authorizations, as well as subsequent amendments affecting tourism regulation. The decision was grounded in a