Issuance of Trade Licenses

1.      Introduction

The main function assigned to the local authorities is to regulate, control and administer all matters relating to public health, public utility services, and generally with the protection and promotion of the comfort, convenience, and welfare of the people and all amenities within the limits of local authority. In terms of the provisions of By-laws made by the respective local authority under Pradeshiya Sabha Act, No. 15 of 1987 to regulate and control trades or businesses carried on within the area of the local authority that may have any adverse effect on public health, hygiene, convenience, and well-being, a license issued by the Chairman of the local authority concerned should be obtained for the place where such trade or business is carried on. Regulation of the issue of the license is the responsibility of that local authority.

Note: By-laws adopted by the local authority should also be considered as by-laws made by that local authority.

2.     Applicable Legislation

        (a)   Section 122 of the Pradeshiya Sabha Act, No. 15 of 1987 and by-laws deemed to have made thereunder or By-laws adopted by the local authority;

        (b)   Section 167 of  the Pradeshiya Sabha Act;

        (c)   Section 149 of  the Pradeshiya Sabha Act;

        (d)   When the industry to which the trade license applies, requires an environmental protection license, Section 23 (o) of the National Environmental Act, No. 47 of 1980 quires.

3.      Eligibility

(a) be a trade or business which, under the provisions of any bye-law, requires a license from the Council.

(b)  In case of a trade or business requiring an environmental protection permit as per orders made under the National Environment Act, there should be a valid environmental protection permit. (Section 23o of the National Environment Act No. 47 of 1980)

4.     Fee

         (a) The fee varies according to the annual value of the place where the industry is carried on.

         (b) The annual value of the place where the industry is carried on—

when the place is situated within the limits of an Urban Council or Pradeshiya Sabha –

Amount of annual value of the place                                     Tax amount

                       Less than Rs. 750.00                                                               Rs. 500.00

                       More than Rs. 750.00 and less than Rs. 1,500.00                    Rs. 750.00

                       More than Rs. 1,500.00                                                           Rs. 1,000.00

5.      Documents to be submitted.

(a) The application in the form in Annexure 01 hereof;

(b) A valid environmental protection license, in case of activities for which an environmental protection license is required in terms of regulations made under the National Environment Act.

6.     Procedure.

Procedure	Duration	Responsibility
Distribution of trade license applications in parallel with revenue source survey	Before 15th November every year	Revenue Inspector
Collect perfected applications	Before 20th November every year	Revenue Inspector
Compare particulars of application with last year’s revenue source survey information	Before 20th November every year	Revenue Inspector
Separate applications for which the recommendation of the Technical Officer is sufficient and the applications that require the recommendation of the Medical Officer of Health of local authority and hand them over to Officer in charge of subject	Before 30th November every year	Revenue Inspector
Forward to Technical Officer of local authority the applications for which his recommendation is sufficient and to Medical Officer of Health the applications that require his recommendation through Secretary	On the day the Revenue Inspector handed in the application.	Officer in charge of subject
Visit the premises relevant to the application, conduct the site inspection and forward application with recommendations and observations to Officer in charge of subject	Before 15th December every year	Public Health Inspector / Technical Officer
Refer recommended applications to Chairperson	Before 15th December every year	Officer in charge of subject
Approve recommendation	Before 15th December every year	Chairperson
Prepare License (Annexure 02) and submit for Signature	Before 15th December every year	Officer in charge of subject
Sign license and refer it to Officer in charge of subject	Before 15th December every year	Chairperson
Refer signed application to Front Office and inform applicant to pay the fee and collet license	Before 15th December every year	Officer in charge of subject
Pay the fee and collect license (Online, if electronic transaction facilities available, otherwise in person at Front Office)	Before the 01st January every year	Applicant
Charge fee and handover receipt and license (Annexure 02) to applicant	Before the 01st January every year	Officer of Front Office
Accounting revenue and updating license fee register	Immediately upon issuing license	Officer of Front Office

        Note:    When the activity related to the license issued as above is an activity that requires an environmental protection license, the local authority should not issue the trade license for the place where the work is performed until an environmental protection license is obtained. [Section 23O of the National Environment Act No. 47 of 1980 as amended by the National Environment (Amendment) Act No. 56 of 1988]

7.     Instances where Public Health Inspector/Technical Officer should not recommend the issue of license –

Procedure	Duration	Responsibility
Refer application to Officer in charge of subject mentioning that issue of license cannot be recommended with reason for rejection	Before 15th December every year	Public Health Inspector / Technical Officer
Inform applicant to rectify shortcomings	Before 15th December every year	Officer in charge of subject
Report that shortcomings rectified	Before 15th December every year	Applicant

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