News
Liquor production up by 22%: Finance Ministry
By Saman Indrajith
Finance Ministry officials have recently informed the Parliamentary Committee on Public Finance (COPF) that during the past two months, liquor production in the country has increased by 22%, and revenue has grown by 23%.
During a meeting presided over by COPF Chair Dr. Harsha de Silva, the Finance Ministry officials announced that plans were underway to introduce a new brand of liquor.
The COPF approved a proposal submitted by the officials to increase the excise duty on liquor.
Finance Ministry officials informed the committee that, under the Order pursuant to Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, a 5.9% increase had been proposed in the excise duty on all items subject to a fixed rupee value-based excise duty, including motor vehicles, cigarettes, aerated beverages, and tobacco products. Furthermore, under Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52), a 5.9% increase in the excise duty on liquor products had also been proposed, the officials said.
The Committee considered the Gazette Extraordinary No. 2418/42, published under Excise Notification No. 01/2025 (Excise Duty on Liquor) issued under Section 22 of the Excise Ordinance (Chapter 52), Gazette Extraordinary No. 2418/43, published under the Order under Section 3 of the Excise (Special Provisions) Act, and Gazette Extraordinary No. 2415/79, published under the Regulations under Section 112 of the Regulation of Insurance Industry Act No. 43 of 2000, at the committee meeting.
The Committee deliberated on the Order under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, as well as Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52).
Dr. de Silva, however, did not approve the proposal to increase the excise duty on cigarettes. He stated that an increase in the excise duty on cigarettes could not be approved without concrete data and emphasized the need for justification regarding the steps taken to increase the excise duty on cigarettes. Furthermore, he pointed out that studies on excise revenue from cigarettes indicated the way the excise duty was calculated had led to a decline in government revenue while increasing the profits of the tobacco manufacturing companies. Therefore, he stressed the importance of ensuring that this tax revision would help increase government revenue. Consequently, the Chair decided to reconsider the Order issued under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, at the next committee meeting, following further clarifications from officials of the Ministry of Finance regarding the excise duty increase.
The proposal to increase the excise duty on liquor under Excise Notification No. 01/2025, issued under Section 22 of the Excise Ordinance (Chapter 52), was considered and approved by the COPF. During the discussions, Members of Parliament raised concerns that such tax increases could potentially drive individuals to the consumption and production of illicit liquor. In response, officials stated that raids against illicit liquor operations were being conducted.
News
Courtesy call by the Heads of Mission- Designate on Prime Minister
The heads of mission designate to Sri Lanka paid a courtesy call on Prime Minister Dr. Harini Amarasuriya on 26th of March at the Prime Minister’s office.
The delegation comprised Dharshana M. Perera, High Commissioner – designate of Sri Lanka to Malaysia, Ms. Dayani Mendis, Ambassador and PRUN – designate of Sri Lanka to Austria, Ms. N.I.D. Paranavitana, Ambassador – designate of Sri Lanka to Ethiopia & African Union, Prof. (Ms.) M.I. Fazeeha Azmi,Ambassador – designate of Sri Lanka to Iran, Saman Kumara Chandrasiri, Ambassador – designate of Sri Lanka to Israel, and M. Farook M. Fawzer, Representative – designate of Sri Lanka to Palestine.
The Prime Minister, Dr. Harini Amarasuriya, extended her best wishes to the Heads of Mission–designate and underscored the importance of their forthcoming assignments in advancing Sri Lanka’s national interests emphasizing their collective role in contributing towards the socio-economic upliftment of Sri Lanka.
The Prime Minister further highlighted the importance of projecting a positive and credible image of Sri Lanka internationally, through consistent, professional, and strategic engagement in their respective host countries and multilateral platforms.
She encouraged the Heads of Mission to actively identify and facilitate high-quality investment opportunities, particularly in sectors aligned with Sri Lanka’s development priorities, with a focus on sustainability, innovation, and long-term value addition.
Particular emphasis was placed on the promotion and diversification of Sri Lanka’s exports, including the exploration of new markets and strengthening trade linkages.
The meeting was attended by the Secretary to the Prime Minister, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta and heads of mission-designate.
[Prime Minister’s Media Division]
News
SC finds Keheliya, others, guilty of violating FRs of public through corrupt drug procurement deal
The Supreme Court yesterday held former Health Minister Keheliya Rambukwella and several senior health officials liable for violating the fundamental rights of the public over a controversial drug procurement carried out under the 2022 Indian Credit Line.
Delivering the judgment, a three-judge bench, headed by Chief Justice Preethi Padman Surasena, and comprising Justice Kumudini Wickremasinghe and Justice Janak de Silva, found that the procurement of medical supplies from an unregistered company, in breach of established procedures, had resulted in a serious infringement of public rights.
The Court ruled that the granting of a Waiver of Registration by the authorities was “wrongful, arbitrary and capricious,” and held that the direct procurement carried out on an unsolicited basis was unlawful. The transaction was accordingly declared null and void.
In a significant order, the Court directed Rambukwella to pay Rs. 75 million in compensation to the State from his personal funds.
The then Health Ministry Secretary Janaka Chandragupta and former Chairman of the National Medicines Regulatory Authority (NMRA), Prof. S. D. Jayaratne, were each ordered to pay Rs. 50 million.
The Court further directed NMRA Chief Executive Officer Dr. Wijith Gunasekara and former Director of the Medical Supplies Division Dr. Thusitha Sudarshana to pay Rs. 50 million each as compensation.
The ruling followed the hearing of a fundamental rights petition filed by Transparency International Sri Lanka and two other parties.
The Court also instructed the Commission to Investigate Allegations of Bribery or Corruption to initiate appropriate action under the Anti-Corruption Act against those found responsible.
Senior Counsel Senany Dayaratne, with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema and Maheshika Bandara, appeared for the petitioners.
News
Sajith nudges govt. to follow India’s example in giving relief to consumers by slashing taxes on fuel
Opposition and SJB Leader Sajith Premadasa yesterday urged President Anura Kumara Dissanayake to reduce taxes on fuel, just as the Indian government has done.
He said in a post on X that “Modi government has decided to reduce the Special Additional Excise Duty on petrol and completely remove it for diesel in order to cushion the hardship on the Indian consumer. High time for Anura Kumara Dissanayake to keep up to his election promise and follow suit.”
Meanwhile foreign media reported that India has slashed excise duties on petrol and diesel to protect consumers and rein in a potential spike in inflation, while imposing windfall taxes on aviation fuel and diesel exports, amid volatile global oil markets, as a result of the Iran war.
Global oil prices have surged past $100 per barrel after the near closure of the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, since the US and Israel first struck Iran on February 28.
In a government order, released late on Thursday, India’s Finance Ministry reduced the special excise duty on petrol to three Indian rupees ($0.0318) per litre from 13 Indian rupees earlier. It also cut the duty on diesel to zero from INR 10 rupees per litre.
The government did not say how much the duty cuts would cost. The move comes ahead of elections next month in four Indian states and one federal territory, with Indian voters known to be extremely sensitive to higher prices.
“Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies, approximately 24 rupees a litre for petrol and 30 rupees a litre for diesel, at this time of sky high international prices, are reduced,” Indian Oil Minister Hardeep Singh Puri said in a post on X.
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