The Sri Lankan government has suspended the manufacturing licenses of eight liquor companies that have failed to pay their outstanding taxes, according to an announcement made by Minister Nalinda Jayatissa, the Chief Organizer of the Government Party, in Parliament.
Among the companies affected are W. M. Mendis and Company, Wayamba Distilleries, McCallum Brewery Private Limited, Globe Builders Lanka Limited, Kalutara Cooperative Society, and Wayamba Store Complex Limited. These companies have accumulated significant unpaid taxes, prompting the suspension of their licenses.
Minister Jayatissa provided further details, noting that three institutions owned by W. M. Mendis and Company owe a combined total of Rs. 580 million in unpaid taxes. He stated that one company under W. M. Mendis and Company has failed to settle arrears from 2022, another from 2023, and a third company has defaulted this year. These tax arrears have now triggered the suspension of their manufacturing licenses.
Additionally, Minister Jayatissa revealed that legal action had been taken against the Excise Department in relation to the non-payment of taxes by Wayamba Distilleries and McCallum Brewery Private Limited. A case has been filed, and further investigation is ongoing regarding these companies’ tax liabilities.
The Minister also clarified that companies that have since paid their outstanding taxes have had their licenses reinstated. However, for those that continue to default, the government is exploring the possibility of utilizing the provisions of the Excise Act to sell off the properties of these companies and recover the unpaid taxes.
In his statement, Jayatissa emphasized the long history of non-payment, with some companies failing to pay their taxes dating back to 2008. The government is now taking a firmer stance, and legal proceedings are underway to ensure the collection of the overdue taxes. This move comes as part of a broader effort to curb tax evasion and ensure that businesses, especially in the lucrative liquor industry, fulfill their tax obligations.
