By Saman Indrajith

The government is working on plans to introduce a new brand of liquor in quarter bottles to reduce the consumption of illicit alcohol better known as kasippu in the country.

This was revealed during the last meeting of the Committee on Public Finance (COPF), where officials from the Ministry of Finance and related statutory bodies discussed the initiative. The new product is expected to generate tax revenue, ranging between Rs 50 to 100 billion.

The meeting was chaired by SJB Colombo District MP Dr. Harsha de Silva.

Officials said that in view of introducing the new quarter bottle, discussions had been held with representatives from the Ministry of Finance, the Excise Department, the Department of Government Analyst, the Industrial Technology Institute, and industry leaders.

They have been working together on the development of the new liquor brand, which will be produced from spirits with a strength of 85 percent, lower than the 96-96.2 percent spirits used in the current market. This brand will be sold in quarter bottles, aimed at luring consumers away from cheaper, illicit alcohol.

Officials present at the meeting said that nearly 40% of alcohol consumers in the country currently consumed moonshine as it was a cheap alternative. Despite the country producing approximately 90 million litres of spirit annually, only two-thirds of the alcohol consumed is legally produced.

Officials pointed out that the surplus of molasses from Pelwatte and Sevanagala sugar factories could be used to produce the new brand of liquor. That presented an opportunity for domestic resources to be utilized in the production process, further supporting the initiative, officials said.

The meeting also included discussions on recent gazette notifications related to excise duties and liquor regulations. Present at the COPF meeting were Deputy Ministers Dr. Harshana Suriyapperuma and Chathuranga Abeysinghe along with MPs Ravi Karunanayake, Harshana Rajakaruna, Dr. Kaushalya Ariyaratne, Nimal Palihena, Wijesiri Basnayake, Attorney-at-Law Lakmali Hemachandra, and officials.