None of the liquor licences issued in 2024, which the current Government alleged had been granted as political bribes during former President and Finance Minister Ranil Wickremesinghe’s tenure, has been revoked to date, Deputy Economic Development Minister Nishantha Jayaweera admitted in Parliament yesterday (21).
This is despite Section 28A(1) of the Excise Ordinance empowering the subject Minister to direct the licence-granting authority to grant, renew or cancel licences without assigning reasons, with the authority required to comply. The provision also rules out compensation or damages claims arising from cancellations made under such directions.
Responding to Opposition Parliamentarian Shanakiyan Rasamanickam, Jayaweera said 356 liquor licences had been issued in 2024, with none cancelled so far. Six Fundamental Rights petitions challenging the issuance of new licences on allegations of political bribery and lack of transparency had been filed, four of which had been taken up for hearing, but no decisions had been delivered.
The admission comes nearly two years after Leader of the House Bimal Rathnayake tabled a list of 361 liquor licences issued by the Excise Department between 1 January and 6 October 2024. On 4 December 2024, Rathnayake alleged that Wickremesinghe had used the licences as political bribes to secure MPs’ support or induce them to switch political allegiance. Of the licences, 172 were FL 4 licences permitting retail liquor sales through wine stores.
Chief Government Whip Dr Nalinda Jayatissa had also said investigations into MPs who received licences during that period had commenced.
Responding to Rasamanickam’s question on measures against illicit liquor production and distribution, Jayaweera said amendments to the Ordinance to increase penalties were under way, with draft amendments already prepared and expected to be passed shortly.
He said the Excise Department conducted 34,945 raids in 2025 and 26,992 so far in 2026.
Asked whether higher alcohol taxes had contributed to increased illicit liquor consumption, Jayaweera said Excise duties had risen continuously from 2023 to 2025, while annual alcohol production increased from 34 million litres in 2023 to 37.5 million litres. Excise revenue rose from Rs 170.3 billion in 2023 to Rs 231.5 billion in 2025, an increase of approximately 36%.
He added that several rounds of discussions had been held on calculating alcohol-related hospital admissions and deaths, as well as the Government’s treatment costs.