Excise Dept. to suspend licenses of tax defaulting liquor manufacturers

The Excise Department has announced that strict actions under the Excise Ordinance will be taken to suspend the production activities of companies that continue to default on excise duty arrears, with their licenses for 2025 withheld.

The Department of Excise revealed that out of the 23 alcohol manufacturing companies licensed for production this year, all but three have cleared their dues before the deadline on November 30.

Accordingly,the department said that legal proceedings will be initiated against the defaulters—W.M. Mendis & Co. Limited, Kurunegala Royal Ceylon Distilleries Private Limited, and Meegoda McCallum Brewery Limited.

Further measures against these companies will be determined based on the judgments of the legal proceedings, the department added.

In addition, efforts are underway to confirm the ownership of non-operational entities, including Lunuwila Globe Blenders, Wayamba Spirits Limited (which holds a wholesale license), and the Payagala Cooperative Liquor Manufacturing Plants, and will proceed to recover outstanding taxes from these companies.

The Excise Department has also suspended operations at the Valikamam Liquor Manufacturing Plant at Vankanai in Northern Province, pending the settlement of overdue excise duties.