A complaint has been lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) alleging that the government has incurred a revenue loss of Rs. 115.5 million.

According to the complaint by the Sri Lanka Liquor Licensees Association (SLLLA), this is due to approving 21 illegal appointments as distribution agents of Lion Brewery – one of Sri Lanka’s largest beer manufacturers.

The SLLLA charges that this approval by the bigwigs of the Excise Department, done while overriding legal procedures, has enabled the relevant 21 individuals to function as beer distributing agents without obtaining the mandatory RB-03 excise license.

2 approvals with the same reference number?

The complaint has further pointed out that under : 

  • Excise Notice No. 219 of the Gazette No. 7845 dated 17 April 1931 and
  • Excise Notice No. 666 of the Extraordinary Gazette dated 31 December 1979

,no right or privilege relating to an excise license can be transferred to another party without proper prior approval.

Despite this, it is said that Lion Brewery (Ceylon) PLC’s Chief Corporate and Regulatory Affairs Officer – Channa Senaratne has sought permission to appoint 21 agents to distribute beer products and collect money.

Accordingly, the SLLLA complaint states that the then Deputy Commissioner of Excise (Legal) Channa Weerakkody had granted approval for 20 agents on June 13, 2024, which was only valid until December 31, 2024.

However, the association alleges that on October 29, 2024, the same Excise official had approved another list of 21 agents under the same reference number.

The complaint further notes that the Excise Department had revised the list of agents again in March 2026, after the initial approval had expired on December 31, 2024.



Revenue loss of Rs. 115.5 million?

The association has also submitted a calculation of the revenue that the government should have received if the aforementioned 21 agents had legally obtained RB-03 licenses for beer distribution.

Accordingly, the complaint alleges that the government has lost Rs. 115.5 million, including Rs. 42 million in annual license fees, Rs. 21 million in security deposits and Rs. 52.5 million in industry entry fees. 

In addition, the association points out that other tax revenues due to the Inland Revenue Department and local government institutions have also been lost.

Allegations against 2 former Excise bosses

Meanwhile, the complaint also alleges that two officials, former Excise Commissioner M.J. Gunasiri and former Deputy Commissioner (Legal) Weerakkody, had mainly intervened in granting these illegal approvals.

The association has alleged that these officials have received significant financial benefits in connection with activities related to Lion Brewery Company as well as in the issuance of new liquor licenses in the past.

The complaint also alleges that money was deposited into a bank account of a relative of the aforementioned former Commissioner General.

Accordingly, the SLLLA has requested the CIABOC to conduct a comprehensive investigation into the assets of the relevant officials as well as into assets of their family members.

Editor’s note : The alleged financial benefits and other irregularities mentioned here are merely allegations levelled in the SLLLA complaint.