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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.
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Bosnian Serb convicted war criminal Ratko Mladic dies
Bosnian Serb General Ratko Mladic, who was serving a life sentence for genocide, war crimes, and crimes against humanity during the bloody 1992-1995 war in Bosnia and Herzegovina, has died.
Mladic, the so-called “butcher of Bosnia” died at the age of 84, the Serbian state RTS television and the official Bosnian Serb television reported. His death was also confirmed by a UN official speaking to the Reuters news agency.
The reports said that Mladic died in a UN prison hospital in The Hague, Netherlands.
A family member of Mladic confirmed the reports and told the Associated Press that Mladic’s son, Darko Mladic, was on his way to The Hague.
Mladic was convicted of genocide for orchestrating the 1995 massacre of at least 8,000 Bosniak men and boys in a UN-designated “safe area” of Bosnia, in Europe’s worst atrocity since World War II.
He spent his last years in jail after he was convicted in 2017 for crimes the tribunal said at the time were “amongst the most heinous known to humankind”.
Former UN rights chief Zeid Ra’ad al Hussein described him as “the epitome of evil” after his conviction.
The former communist officer-turned nationalist warlord, was one of the most notorious figures of the conflict in which more than 100,000 people were killed and more than one million were driven from their homes.
He commanded his troops to “scorch the brains” of the Bosniaks and boasted of being a “Serbian god”.
When the Bosnian war started in 1992, Mladic became the commander of the Bosnian Serb troops and took control of large swaths of the country in an attempt to form a Serb mini-state.
Serbs under Mladic’s control laid siege to the capital, Sarajevo, and other cities and villages, established camps for detained Bosniaks and enemy soldiers, and systematically killed prisoners.
The killings, recognised as a genocide, were the culmination of a war that had lasted over three years, in which the Mladic pounded the besieged capital Sarajevo daily with the artillery, tanks, mortars and heavy machine guns of his nationalist Serb army, killing 10,000 people.
The dead from Srebrenica were bulldozed into mass graves over four days in July 1995, some of them dug up and relocated to remote mountains so as to hide evidence of the killings.
The goal, as determined by the UN International Criminal Tribunal for the former Yugoslavia (ICTY), was “ethnic cleansing” — the forcible expulsion of Bosniaks, Croats and other non-Serbs to clear Bosnian lands for a Greater Serbia.
The tribunal found that Mladic, together with late Serbian President Slobodan Milosevic and Bosnian Serb political leader Radovan Karadzic, were part of a criminal conspiracy to implement the plan.
Defiant to the end, Mladic said “I do not recognise this court,” at an ICTY hearing of his case in 2014.
When he was sentenced to life in prison in 2017 he shouted: “This is all lies, you are all liars!”
[Aljazeera]
News
Patali alleges NPP conspiring to put off elections indefinitely
* Govt. lacks plan to meet IMF targets
By Shamindra Ferdinando
United Republican Front (URF) leader Patali Champika Ranawaka has alleged that the 22nd Amendment is aimed at enabling the National People’s Power (NPP) to perpetuate its rule without conducting elections.
The former Minister was addressing the media at the Flower Road Office of UNP leader Ranil Wickremesinghe on Tuesday (25). Alleging that the Pelawatte-based ‘red junta’ spearheaded the operation to enact the controversial 22nd Amendment, the ex-parliamentarian pointed out that neither President Anura Kumara Dissanayake nor Health and Media Minister Dr. Nalinda Jayathissa, who is also the Cabinet spokesman, never denied declarations made by various members of the NPP parliamentary group that elections wouldn’t be conducted for 10, 20 years.
The President and the Cabinet spokesman never clarified that such declarations were not the position of the government, Ranawaka said. The URF leader pointed out that some NPP/JVP members told those receiving appointments that they would also retire under the same administration.
Addressing the media after former External Affairs Minister Prof. G. L. Peiris, convenor of the Joint Opposition, said that the government recognised them as the real opposition. Referring to Dr. Jayathissa’s recent claim that they conspired at the residence of Prof. Peiris and challenged them to come on to the streets, ex-lawmaker Ranawaka thanked the Minister for the recognition at the expense of the Samagi Jana Balawegaya (SJB). The government accepted the challenge posed by them in spite of the main Opposition party, in Parliament, having 40 MPs, the URF Chief said, urging the government to reveal the identities of those who clandestinely led the ruling party.
The former MP said that the country was now aware of their conspiracies during the past six decades. Blaming the government for its inordinate delay in conducting the Provincial Council polls, and the failure to take tangible measures to do away with the executive presidency, as repeatedly promised in the run-up to the national elections in 2024, Ranawaka alleged that the government was busy conspiring to roll back the electoral map. He also alleged that President Dissanayake was leading the operation.
According to Ranawaka the government was keen to postpone elections indefinitely as its members feared to face the law under a different government.
Commenting on the economic situation, Ranawaka explained how under President Wickremesinghe tough measures were taken during the 2022 to 2024 period to stabilise the country with the backing of the International Monetary Fund (IMF). “However, the country cannot go on beyond 2027 under the current setup. In terms of the agreement with the IMF, the debt repayment was stopped. However, the country will have to start repayment in 2028,” the ex-MP said, pointing out the country’s reserves were down to USD 6.4 bn.
The ex-MP said the IMF expected Sri Lanka to maintain foreign reserves at USD 6.8 bn and to increase the reserves to USD 12 bn next year. In terms of the IMF’s recommendations, the foreign reserves have to be increased to USD 15 bn by 2028, Ranawaka said, recollecting how former President Ranil Wickremesinghe, at a recent book launch, explained the daunting challenges faced by the country on the economic front.
Ranawaka was referring to Wickremesinghe’s speech at the launch of former Minister Ranjith Siyambalapitiya’s book launch at the BMICH, where the former President warned of dire consequences if the government failed to adhere to the IMF formula.
The former Minister disputed the government’s much touted claim that corruption was dealt with. The person who caused an unprecedented gas crisis, in 2021, by promising to supply gas at a much lower price than what was paid by the then government at that time and ended up causing countrywide panic due to “accidental” blasts of domestic gas cylinders, received protection from this government.
The government conveniently refrained from initiating action against that person, Ranawaka said. Referring to the developments leading to President Gotabaya Rajapaksa’s government declaration of bankruptcy in April 2022, the ex-Minister claimed that the IMF, in a letter dated 7 March, 2022, alerted the Secretary to the President, the Finance Ministry and the Central Bank, of the impending economic collapse. The NPP government failed to take action against those responsible for creating the 2022 crisis, Ranawaka said.
News
August 15 Super Dvora tragedy: Search continues for missing officer’s body
Navy headquarters yesterday said it was continuing the search for Lt. Thilina Udayapriya, second-in-command of the Super Dvora Mark III Fast Attack Craft (FAC), which sank in the seas off Angulana, on 15 August, 2026. Of the 12-member crew, 11 were rescued but so far SLN efforts to locate the missing officer’s body had failed, sources said.
They said that the salvage operation of the sunken craft, taken delivery from Israel after the end of the war, is continuing amidst gruelling weather and rough sea conditions, and the sunken vessel is now off Bambalapitiya.
Sources said that the vessel collided with a sunken ship MV Thermopylae Sierra that sank in August 2012, during a monsoon storm. The ill-fated Super Dvora Mk III has gone over the ship wreck in spite of it being clearly demarcated in the nautical chart, aka hydrographic chart available to the ill-fated vessel’s crew. But authorities had failed to mark the site with a buoy to warn maritime traffic, in spite of public appeals. (SF)
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