Alcohol production at two of the main distilleries of Sri Lanka has been temporarily suspended by the Excise Department.
According to Excise Department sources, the two main distilleries are W.M. Mendis & Co. and Randenigala Distilleries.
They further said that the measure has been taken due to the failure to pay taxes.
The move comes after the Excise Department, in November, suspended the licences of Synergy Distilleries (Pvt) Ltd, Finnland Distilleries Corporation (Pvt) Ltd, Wayamba Distilleries, W M Mendis & Co Ltd and the Randenigala Distilleries Lanka (Pvt) Ltd were suspended.
At the time, the Department said that the licences of the five liquor manufacturing companies were suspended after their annual licences had not been renewed due to the failure to pay tax arrears.
Following the suspension, State Minister of Finance Ranjith Siyambalapitiya informed the Parliament that the five liquor production companies owed tax arrears amounting to Rs. 2,715 million to the government.
The State Minister further said that the total tax default with the three per cent penalty for default stands at Rs. 6,721 million. (NewsWire)