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Authorities working on alternative to moonshine

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Karunanyake at COPF meeting

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.



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Former first lady Shiranthi Rajapaksa arrested by CIABOC

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Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

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U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

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The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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