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Alcohol taxes pushing consumers into hooch, drugs: DCSL chief
ECONOMYNEXT –High alcohol taxes are pushing the public who have been hit by an economic crisis, into illegal alternatives, Harry Jayewardena, head of Distilleries Corporation has said.
DCSL has seen a fall in sales in the past year.
“Looking ahead, it is evident that the current tax policies, if maintained, will have detrimental effects on the legal alcohol sector,” Jayawardena told shareholders in the annual report.
“The affordability of legal alcohol is likely to decrease further, pushing consumers towards harmful, illegal alternatives, including drugs.
“This situation is concerning, and we strongly urge policymakers to re-evaluate the taxation approach for legal alcohol. It is essential to find a balance that makes alcohol accessible while discouraging the use of illicit substances.”
Sri Lanka’s rupee collapsed from 200 to 360 to the US dollar in 2022 after macro-economists cut rates with inflationary open market operations, for flexible inflation targeting (printing money to boost inflation without a floating rate) and potential output targeting (printing money for growth0, triggering currency crises.
The latest collapse came on top of earlier targeting of the call money rate with inflationary open market operations by macroeconomists, without a floating exchange rate busting the currency from 113 to 200 from 2012 to 2020.
Amid deflationary policy from late 2022, the rupee has been allowed to appreciate to 300 to the US dollar.
Meanwhile DCSL said taxes were hiked from 5,000 rupee to 6,000 rupees per absolute proof liter in July 01, 2023 and another 840 rupees taking the duty to 6,840 rupees.
“These hikes have not only increased the price of alcohol products by approximately 58% but have also widened the gap between legal and illicit alcohol markets, inadvertently driving growth in the latter,” Jayawardena said.
Alcohol is also hit by other sales taxes including 18 percent value added tax, the 2.5 percent cascading Social Security Contribution Levy slammed two points (at manufacture and also sales at half the rate).
Not enough is done to curb illicit alcohol Jayawardena said.
However a top excise official said they had increased raids. There are also higher levels of home made kasippu.
Youtube videos detailing how to distill kasippu are racking up views by the million. There is anecdotal evidence of how government workers and others also increasingly turning into kasippu (which is now sold in small plastic bags) to be easy on the purse.
A legal standard arrack (special or ‘gal’) sells for around 3500 rupees a 750 bottle compared to 1,200 to 1,500 kasippu or around 300 to 350 rupees per ‘quarter’ plastic bag.A quarter bottle of legal arrack is around 800 to 900 rupees.
News
Record 1,600 students take Russian Classical Ballet examination in Sri Lanka
More than 1,600 students sat this year’s Russian Classical Ballet Examination, the largest number ever to take part in the examination in Sri Lanka. Exams were held in Colombo from 5, to 18, October and in Galle on 10 October.
Students aged four and above came from across the island, including Colombo, Galle, Gampaha, Negombo, Matara, Kelaniya, Panadura, Wattala, Kiribathgoda, Ratnapura, Kandy, Kurunegala, Bandarawela and Badulla. They are taught by 15 dedicated teachers trained in the Vaganova method, the renowned Russian system of classical ballet training.
They were examined by Dr. Oxana Karnovich of the Moscow State Academy of Choreography, a distinguished academic and curator.
The Russian School of Ballet and Dancing was established in 2001 by Michael Ustinov, Buddhapriya Ramanayake and Mrs Chandi Aluvihare, with Mrs Galina Pleshakova as its founding instructor. Today the School is led by Director Madam Maria Popova, Counsellor of the Embassy of the Russian Federation in Sri Lanka.

News
Buddhist hierarchy demands prison perks for monk convicts
MONETABRIEF– Sri Lanka’s two most senior Buddhist chapters, Malwatte and Asgiriya, demanded special concessions for monks serving prison sentences, following the disrobing of convicted monk Ven. Galagodaatte Gnanasara in line with established procedures.
The chief prelate of the Asgiriya chapter, Most Venerable Warakagoda Sri Gnanarathana, told Prisons Commissioner Senaka Palletenna that Ven. Gnanasara, who is serving a six-year sentence for contempt of court, must be released immediately.
Prison authorities have no power to release or pardon convicts, but Palletenna told the monk in Kandy on Friday that he would convey his request to the relevant government authorities.
“There is no point in talking about this and that… The entire country has been shaken (??????? ) . He must be released,” the Asgiriya chief prelate said.
The Malwatte chief prelate, Most Venerable Thibbatuwawe Sri Siddhartha Sumangala, appeared to accept the court verdict against Ven. Gnanasara, but asked the prisons chief whether a separate section could be established for convicted monks.
Palletenna noted that a special ward for the clergy already existed at Welikada Prison.
At least 63 convicted Buddhist monks are currently incarcerated within Sri Lanka’s criminal justice system.
Meanwhile, a group of 34 Buddhist monks named in a Colombo Fort Magistrate’s Court order to vacate the vicinity of the Presidential Secretariat ended their protest and dispersed after lunch on Friday.The monks are demanding an unconditional pardon for Ven. Gnanasara, who has previously been imprisoned, making him a reconvicted prisoner.
News
Debate on NCM against Speaker postponed indefinitely
The debate on the no-confidence motion against Speaker Dr. Jagath Wickramaratne, submitted by the Samagi Jana Balawegaya (SJB), has been postponed indefinitely pending the Attorney General’s opinion on certain technical issues in the motion.
Government representatives raised the matter at a meeting of the Committee on Parliamentary Business, pointing out that several provisions of the motion required clarification and that the Attorney General’s advice should be obtained.
As obtaining the opinion would take time, the debate could not be scheduled for the next parliamentary week, parliamentary sources said.
Chief Opposition Whip Gayantha Karunatilaka said a date for the debate would be decided after the Attorney General’s advice was received.
Meanwhile, Parliament is scheduled to meet from October 20 to 23, Secretary General of Parliament Kushani Rohanadeera announced.
The parliamentary business for the week was finalised at a meeting of the Committee on Parliamentary Business held on Friday (16) under the chairmanship of Deputy Speaker Dr. Rizvie Salih.
On each sitting day, the period from 9.30 a.m. to 10 a.m. will be allocated for parliamentary business under Items 1 to 6 of Standing Order 22. Questions for Oral Answers will be taken up from 10 a.m. to 11 a.m., followed by questions under Standing Order 27(2) from 11 a.m. to 11.30 a.m.
On Tuesday, October 20, an Opposition-sponsored Adjournment Motion will be debated from 11.30 a.m. to 5.30 p.m.
On Wednesday, October 21, a resolution under the Public Debt Management Act and a Supplementary Estimate will be taken up for debate and approval from 11.30 a.m. to 5 p.m. The annual reports of five statutory institutions will subsequently be presented for approval without debate, while questions at the Adjournment Time will be taken up from 5 p.m. to 5.30 p.m.
On Thursday, October 22, the Second Reading debates on two Bills to amend the Poisons, Opium and Dangerous Drugs Ordinance (Bills Nos. 79 and 80) will be held from 11.30 a.m. to 5 p.m.
The annual reports of five statutory institutions will then be taken up for approval without debate, followed by an Opposition-sponsored Adjournment Motion from 5 p.m. to 5.30 p.m.
On Friday, October 23, the Second Reading debate on the Elimination of Rabies and Registration of Dogs Bill will be held from 11.30 a.m. to 5 p.m. A Government-sponsored Adjournment Motion will be debated during the final half-hour of the sitting.
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