Minister of State for Finance Ranjith Siyambalapitiya has said that new liquor licenses will be issued only based on factors such as the country’s population and tourist arrivals.

He said this in response to questions from reporters about allegations that the government is working to transfer 55 of the 100 liquor licenses owned by ‘Sathosa’ to other companies.

Commenting further, the State Minister said:

“There has never been a time when taxes collected from liquor establishments were so carefully and systematically collected. Also, as alleged, we were not asked to issue liquor licenses belonging to Sathosa. 

“I am also informed that the liquor license cannot be leased out to another person even if such requests are made.

“So, the government also aims to control the production of illegal liquor. Also, if liquor license is issued for a particular area, the opinion of the Divisional Secretary and Police must be sought. We will not take any action to grant liquor license to those areas at any time when reasonable objections arise.

In 2003 alone, the price of alcohol increased by 108% due to the imposition of tax. The government is never going to increase the legal use of alcohol. We reject the allegations that the government is giving liquor licenses to its friends. Until now, the ‘RB 04’ permit given to liquor companies in the country, although no initial fee was charged at the time of issuing the license, it currently charges a fee of Rs. 15 million.” 

The state minister also noted that the annual fee charged for all liquor licenses has been increased tenfold and accordingly the government is working to reduce the production of illicit alcohol and reduce the consumption of legal liquor.