Distilleries Company of Sri Lanka Chairman and business tycoon Harry Jayawardena recently stated that the coconut arrack industry is often given 'step-motherly treatment' and reiterated that the government should look into the existing retail licenses system as it is heading for a gradual monopoly paving the way for bootleggers to sell their illegal product with ease.

“We notice that step-motherly treatment is given to the coconut arrack industry,” Jayawardena told shareholders in the annual report 2019/20.

“With the prevailing exorbitant pricing structure of coconut arrack, sales volumes are shrinking daily. Today, 100% coconut products are out of reach of the consumer due to prevailing taxes. The Government must seriously look into this matter to reduce prices in order to divert some of the ENA customers to coconut products. We fear the real coconut arrack will soon be out of the market if immediate action is not taken.”

“The Government should also look into the existing retail licenses system as it is heading for a gradual monopoly paving the way for bootleggers to sell their illegal product with ease,” Jayawardena added.

Speaking further he also expressed the following:

“We have always observed every Government regulation, paid every tax, excise duty and all other levies imposed judiciously, without exception. Unfortunately, the same cannot be said for all our competitors and the illegal and illicit liquor industry - for this is now an industry by itself.”

“This uneven playing field mainly affects lower-end consumers who, due to economic reasons and high taxes, are forced to purchase illegal or illicit products on which such levies are have not been paid.”

“Although the purchasing power of the customers are diminishing day by day the consumers still patronise the legal products on which all legal levies have been paid. If this can be delivered, then both the consumer and the country will benefit," he added.