The Treasury has instructed Sri Lanka Customs to release the consignments of imported ethanol held at the port by authorities, due to the ban imposed on imported ethanol from 1 January, on the condition that no further imports of ethanol will be allowed.
Secretary to the Treasury S.R. Attygalle, in a letter addressed to the Director General of Customs dated Wednesday (24) and seen by The Sunday Morning Business, stated that President Gotabaya Rajapaksa has instructed to clear the consignments following a request made to the President by Distilleries Company of Sri Lanka PLC (DCSL) Chairman Harry Jayawardena on 11 June.
The Government announced a ban on ethanol imports on 1 January this year with immediate effect. The ban came as a New Year shock to alcohol manufacturers as the Government neither pre-informed the industry nor consulted stakeholders before taking the decision to ban a primary ingredient of alcohol.
According to Department of Excise Deputy Commissioner – Law Enforcement and Media Spokesman Kapila Kumarasinghe, the import ban on ethanol was imposed in a bid to control the massive amount of revenue flowing out of the country for imports.
Nevertheless, manufacturers were assured that they would be allowed to clear the pre-ordered shipments of ethanol. However, even after six months into the ban, authorities did not allow manufacturers to clear the consignments as allowing them to clear would be a violation of the ban. The Sunday Morning Business learnt that a leading alcohol manufacturer has about 70 containers with over one million litres of imported ethanol at Sri Lanka’s ports.
Following the import ban in January this year, the alcohol industry was forced to use ethanol produced at two government-run sugar mills in Sevanagala and Pelawatta, leaving them concerned as to whether the locally manufactured ingredient would be compatible to deliver a final product that can match the quality, safety, and taste of imported ethanol.
Industry stakeholders stated that they are receiving criticism from regular consumers who have complained about throat itching, mild and extended headaches, and abnormal vomiting as well as a drop in taste.
"The quality of liquor is generally determined through the four vital aspects of taste, colour, odour/bouquet, and mouth feel – all of which have drawn significantly negative feedback from both consumers and experienced liquor company spokespersons," alcohol manufacturers said in a joint statement.
However, Co-Cabinet Spokesman Dr. Ramesh Pathirana, during a cabinet meeting held on Thursday (25), stated that certain people are spreading false information about the locally produced ethanol and assured that there are no issues in the quality of the local production.
The industry has also complained that the local production of ethanol is not nearly sufficient for the local requirement of ethanol. According to sources, local ethanol production is estimated to be 24 million litres per annum, while the country’s leading alcohol manufacturer alone requires about three times this amount.
However, Dr. Pathirana added that the policy of this Government is to protect and promote local industries and therefore the importation of ethanol was banned as local ethanol distilleries are capable of catering to the local demand.
He added that as a result, state-owned ethanol distilleries in Sevanagala and Pelawatta which were earlier making losses are now making profit. He said that by limiting the importation of ethanol, the employment of about 50,000 sugarcane farmers in those institutions has been secured and that they would be made profitable in the coming year.
Dr. Pathirana further stated that despite the ban, a large quantity of ethanol imported to the country has been stored in the port and certain people are importing ethanol through other code numbers, adding that necessary measures will be taken to prevent this in the future.Enjoy your last sip, Govt. tells liquor industry
27 Jun 2020
Enjoy your last sip, Govt. tells liquor industry
27 Jun 2020
The Treasury has instructed Sri Lanka Customs to release the consignments of imported ethanol held at the port by authorities, due to the ban imposed on imported ethanol from 1 January, on the condition that no further imports of ethanol will be allowed.
Secretary to the Treasury S.R. Attygalle, in a letter addressed to the Director General of Customs dated Wednesday (24) and seen by The Sunday Morning Business, stated that President Gotabaya Rajapaksa has instructed to clear the consignments following a request made to the President by Distilleries Company of Sri Lanka PLC (DCSL) Chairman Harry Jayawardena on 11 June.
The Government announced a ban on ethanol imports on 1 January this year with immediate effect. The ban came as a New Year shock to alcohol manufacturers as the Government neither pre-informed the industry nor consulted stakeholders before taking the decision to ban a primary ingredient of alcohol.
According to Department of Excise Deputy Commissioner – Law Enforcement and Media Spokesman Kapila Kumarasinghe, the import ban on ethanol was imposed in a bid to control the massive amount of revenue flowing out of the country for imports.
Nevertheless, manufacturers were assured that they would be allowed to clear the pre-ordered shipments of ethanol. However, even after six months into the ban, authorities did not allow manufacturers to clear the consignments as allowing them to clear would be a violation of the ban. The Sunday Morning Business learnt that a leading alcohol manufacturer has about 70 containers with over one million litres of imported ethanol at Sri Lanka’s ports.
Following the import ban in January this year, the alcohol industry was forced to use ethanol produced at two government-run sugar mills in Sevanagala and Pelawatta, leaving them concerned as to whether the locally manufactured ingredient would be compatible to deliver a final product that can match the quality, safety, and taste of imported ethanol.
Industry stakeholders stated that they are receiving criticism from regular consumers who have complained about throat itching, mild and extended headaches, and abnormal vomiting as well as a drop in taste.
"The quality of liquor is generally determined through the four vital aspects of taste, colour, odour/bouquet, and mouth feel – all of which have drawn significantly negative feedback from both consumers and experienced liquor company spokespersons," alcohol manufacturers said in a joint statement.
However, Co-Cabinet Spokesman Dr. Ramesh Pathirana, during a cabinet meeting held on Thursday (25), stated that certain people are spreading false information about the locally produced ethanol and assured that there are no issues in the quality of the local production.
The industry has also complained that the local production of ethanol is not nearly sufficient for the local requirement of ethanol. According to sources, local ethanol production is estimated to be 24 million litres per annum, while the country’s leading alcohol manufacturer alone requires about three times this amount.
However, Dr. Pathirana added that the policy of this Government is to protect and promote local industries and therefore the importation of ethanol was banned as local ethanol distilleries are capable of catering to the local demand.
He added that as a result, state-owned ethanol distilleries in Sevanagala and Pelawatta which were earlier making losses are now making profit. He said that by limiting the importation of ethanol, the employment of about 50,000 sugarcane farmers in those institutions has been secured and that they would be made profitable in the coming year.
Dr. Pathirana further stated that despite the ban, a large quantity of ethanol imported to the country has been stored in the port and certain people are importing ethanol through other code numbers, adding that necessary measures will be taken to prevent this in the future.Kapruka
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!