News
Hard liquor giant moving into soft liquor manufacture
Distilleries acquire Heineken’s SL business for over Rs. 4 bn.
Distilleries Company of Sri Lanka PLC (DCSL) has concluded a major acquisition of the Sri Lanka operation of Heineken, a major player in the global beer industry at a consideration of Euro 12 million, (over Rs. 4.2 billion), DCSL announced last week in a stock exchange filing.
This will bring the Harry Jayawardena company, the lead player in the country’s alcohol industry, into competition with Lion Brewery PLC which dominates the beer brewing and marketing industry at present. In an earlier era, the Ceylon Brewery, now Ceylon Beverage Holdings PLC, led the beer market share with its Lion beer with Three Coins, manufactured by McCallum Brewery, trailing behind.
This brings a deal which was in the pipeline since mid-November last year, as disclosed by DCSL in a stock exchange filing, to finality. Fitch ratings said last November when news of the pending transaction broke that Lion could face more competition in the medium term once the deal was done.
“Heineken is a distant second in Sri Lanka’s beer market for now, but we believe DIST has the industry know-how, market access and financial strength to elevate Heineken’s operations to a level that could weigh on Lion’s market share,” Fitch said.
“We believe a large capacity expansion at Heineken Lanka would be required to compete effectively with Lion. We estimate the expansion will require significant capital outlay and at least two-to-three years to complete. We believe DIST has the financial strength to fund the expansion, with its annual free cash flow, excluding dividends, averaging LKR10 billion-12 billion. DIST, as the largest spirits manufacturer in the country, already has extensive market access covering all forms of retail channels, providing easy market penetration compared with a new entrant,” Fitch said.
“However, we expect DIST to face near-term challenges in terms of brand building given the complete ban on media advertising on alcoholic beverages by the government. Lion already has a very strong brand presence in the market compared with Heineken due to the greater mass-market appeal of its products, with cheaper pricing and customization to local preferences.”
Fitch expected the acquisition to be positive for DIST as it will help the company to strengthen its market position with a presence in both hard and soft liquor markets. The acquisition will also allow DIST to take advantage of the lower excise duties applicable to beer on an alcohol-equivalent basis.
There has been a shift to beer from hard liquor in recent months due to the significant increase in excise duties. DIST could also benefit from the revival in Sri Lanka’s tourism industry, as beer is more popular among tourists than locally made hard liquor, the rating agency said.
News
Ranawaka accuses govt. of using JVP cadres and police to suppress political opponents
… reminds AKD led over 560 protests during Yahapalanaya
Former Yahapalana Minister and United Republican Front (URF) leader Patali Champika Ranawaka yesterday (19) alleged that the JVP, which carried out over 560 protests during the 2015-2019 period, was now bent on preventing the Opposition from exercising its democratic right to protest.
Recalling the declaration made by the JVP at the height of the violent protest campaign in July 2022 that it would set the Parliament ablaze, the former parliamentarian lashed out at the JVP-led administration for using the police excessively to curb political opposition. Ranawaka said this while addressing the media at the former President Ranil Wickremesinghe’s Flower Road Office .
Commenting on the protest campaign launched by the Maha Sangha, demanding presidential pardon for General Secretary of the Bodu Bala Sena (BBS) Ven. Galagotaatte Gnanasara, the ex-Colombo District lawmaker alleged that President Anura Kumara Dissanayake used a combination of police, investigative units and JVP cadres to break up the monks’ protest. The government went to the extent of compelling the JVP/NPP-run Colombo Municipal Council (CMC) to deprive the peaceful protesters of basic toilet facilities, he alleged.
The government’s actions proved that only those with prior approval from JVP Pelawatte headquarters could launch protests in Colombo, its suburbs or in the provinces. The police have become a political tool in the hands of the JVP, the ex-Minister said. (SF)
News
Six killed as speeding bulker crashes into vehicles, shop in Akurana
By SK Samaranayake
Six people were killed and seven others injured when a speeding bulker lorry carrying cement and concrete ploughed into several vehicles and a shop on the Kandy-Jaffna A9 road at Kurugoda, Akurana, yesterday (19).
Four of the victims, two women and two men, died on the spot in the accident which occurred around 10.30 am, according to Alawathugoda Police.
Police said the bulker, travelling at high speed from the Matale direction, collided with three three-wheelers, two motorcycles and two lorries before veering off the road and crashing into a commercial establishment.
Five of the injured were rushed to the National Hospital of Kandy, where hospital sources said two remained in critical condition.
The bodies of the four victims were placed at the Akurana Hospital, where two others, who suffered minor injuries, were also receiving treatment.
The driver of the bulker was arrested by the Alawathugoda Police Traffic Division and is to be produced before court.
Investigations are being conducted under the supervision of Central Province Senior DIG Lalith Pathinayake.
News
Prof. Peiris, summoned by CIABOC, appeals for Ven. Gnanasara’s release
By Shamindra Ferdinando
owledging that there had been an administrative lapse on the part of the President’s Office in 2019 when Maithripala Sirisena granted presidential pardon to Ven. Gnanasara Thera, Convener of Janathawadi Joint Opposition Prof. G.L. Peiris yesterday (19) urged President Anura Kumara Dissanayake to rectify whatever those shortcomings and release the General Secretary of Bodu Bala Sena.
Addressing the media at the former President Ranil Wickrekmesinghe’s Flower Road Office, Prof. Peiris emphasized that it was not fair to hold Ven. Gnanasara accountable for lapse or technical fault of others at the Presidential Secretariat during President Sirisena’s tenure.
Prof. Peiris was flanked by UNP Chairman Wajira Abeywardena and United Republican Front (URF) leader Patali Champika Ranawaka.
The fresh appeal was made on behalf of Ven. Gnanasara in the wake of President Dissanayake and JVP heavyweight Anura Kumara Dissanayake ruling out fresh presidential pardon for the monk. Minister Lal Kantha declared that the government couldn’t under any circumstances meet the continuing monks’ protest demanding Ven. Gnanasara’s release. President Dissanayake dismissed repeated appeals for Ven. Gnanasara’s release when he addressed the NPP really in Badulla.
Sirisena granted presidential pardon in May 2019 even before he completed a year of his six-year term of rigorous imprisonment for contempt of court during proceedings of the media personality Prageeth Ekneligoda’s 2010 January disappearance in the Homagama Magistrate’s court.
At the onset of the regular weekly briefing, Prof. Peiris said that he would report to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) today (20) morning as requested by the commission. “The CIABOC wanted to record my statement regarding a meeting I chaired at the ministry after the conclusion of the war in 2009 pertaining to an ongoing investigation.”
Commenting further on the imprisonment of Ven. Gnanasara, the former parliamentarian said that President Sirisena intervened following a spate of requests made on behalf of BBS General Secretary by the Mahanayakes, Anunayakes and other Maha Sangha.
The Supreme Court on 10 September, 2026 rescinded the presidential pardon granted in late May 2019.
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