By Ceylon Signal 
A detailed complaint submitted to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has accused the Excise Department of Sri Lanka of causing a Rs. 115,500,000 loss to the government by illegally appointing beer distribution agents linked to Lion Brewery (Ceylon) PLC.
The complaint, lodged by the Sri Lanka Liquor Licensees Association (SLA), alleges that senior Excise officials bypassed legal procedures and granted unauthorized approvals that allowed 21 individuals to operate as beer distributors without obtaining the mandatory RB-03 excise license.
Illegal Approvals and Regulatory Violations
According to the complaint, Excise regulations clearly prohibit transferring any right or privilege of an excise license to another party without prior approval from the Excise Commissioner General or the Provincial Secretary. These conditions are outlined in:
Excise Notification 219 (Gazette No. 7845 of 17 April 1931)
Excise Notification 666 (Extraordinary Gazette of 31 December 1979)
Despite these legal requirements, Lion Brewery’s Executive Officer for External Affairs, Channa Senarathna, reportedly requested approval to appoint 21 agents for distribution and money collection. The then Deputy Commissioner (Legal), Channa Weerakkody, granted approval on 13 June 2024 for 20 agents, valid only until 31 December 2024.
However, on 29 October 2024, the same official issued another approval—under the same reference number—authorizing a list of 21 agents, expanding the scope beyond the initial permission.
In March 2026, the Excise Department revised the list again, despite the original approval having expired at the end of 2024.
The SLA argues that such approvals can only be granted under exceptional circumstances, as stated in Excise Notification 666, and that the actions of the officials were unlawful and irregular.
Financial Loss to the State
The complaint outlines the financial impact had the 21 distributors obtained proper RB‑03 licenses:
Annual license fee: Rs. 42,000,000
Security deposit: Rs. 21,000,000
Industry entry fee: Rs. 52,500,000
Total loss: Rs. 115,500,000
The association further claims that additional tax revenue due to the Inland Revenue Department and local government authorities was also lost due to the unauthorized operations.
Allegations Against Former Excise Officials
The complaint names two former senior officials as key figures in facilitating the irregular approvals:
M.J. Gunasiri, former Excise Commissioner
Wanna Weerakkody, former Deputy Commissioner (Legal)
It alleges that both individuals received substantial financial benefits not only from Lion Brewery but also during the issuance of new liquor licenses in previous years. The complaint further claims that funds were deposited into the bank account of a relative of the former Commissioner General.
The SLA has requested CIABOC to conduct a full investigation into the illicit assets of the officials involved, including their family members.
