In chairman’s message, DCSL chairman Harry Jayawardena alleges the legal alcohol business continues to gain bad press, and says, “It is my firm conviction that the non-invoiced and tax unpaid alcohol sector should be the focus of investigation and national scrutiny as it is a scourge and promotes alcohol abuse and other social problems.”

“Moreover, even the national coffers are denied substantial excise revenue
which could be accrued if the non-invoiced and tax unpaid alcohol sector was discouraged by better enforcement and checks.”

Jayawardena goes onto say the loss of excise revenue due to the rise of noninvoiced and tax unpaid alcohol business is fed by leakage of ethanol from local sugar factories and the illegal import of ethanol.

“It is common knowledge that the paint and cologne industries act as a front for the import of spirits in order to pass through customs, while also functioning as a front for the illegal manufacture and sale of liquor, which is sold cheaper than those that are heavily taxed. The North and East
are the best markets for such sales. Therefore, it is vital that the regulators enforce the law and contain the widespread corruption that fuels such illicit business activities.”

It is heart rending to witness the collapse of the tradition of toddy tapping, a proud legacy in our country. Increasingly, toddy suppliers are giving up their business by leasing or selling their lands and trees, leading to a decrease in the supply of toddy.

The main contributory factor is the considerable rise in the number of illegal, artificial toddy manufacturers. Every day, large quantities of artificial toddy are transported to manufacturers, while law-enforcing authorities turn a Nelsonian eye. We are the only Company that produces 100% natural coconut arrack using 100% pure coconut toddy distilled in our own distilleries, providing consumers a 100% natural product, vis-a-vis our competitors who purchase spirits produced using artificial toddy.

It is regrettable that the entire toddy market is transforming into an artificial one and the Department of Excise is not taking action. Vast quantities of sugar, ammonia, yeast, salt, rotten potatoes, sugar syrup and remnants of toddy sludge are being used in the manufacture of artificial toddy. The natural form of fermentation is thus rendered extinct, substituted with poisonous ingredients which are detrimental to the health of consumers.

Despite these serious violations taking place in the industry, we remain optimistic about the potential of our alcoholic beverage business. This bullish view is reflected in our investment of Rs. 2.5 Bn in a state of the art blending and bottling plant which will enable enhanced capacity, better packaging, presentation, and prevent adulteration of our products, Jayawardena adds.