 
Former President Ranil Wickremesinghe issued a detailed response to allegations concerning the issuance of liquor licenses during his administration, emphasizing the broader economic context and the legal framework behind the measures. He explained that prior to 2022, previous governments had not imposed fees on excise licenses. By the time his administration implemented changes, Sri Lanka was in the midst of a severe economic crisis marked by a sharp decline in direct tax revenues. Facing potential bankruptcy, the government sought alternative methods to generate revenue, as recommended by procedural and regulatory committees in Parliament. Introducing fees on excise licenses was one such measure.
Policy Implementation and Legal Framework
The reforms were incorporated into the 2024 Budget, which introduced enhanced excise administration and revised tax policies. These changes, approved by Parliament, included structured regulations, new eligibility criteria, and limits on the number of licenses issued.
The fee structure was based on regional demand and scale of operation. Municipal council areas required an entry fee of LKR 15 million, an annual license fee of LKR 1 million, and a security deposit of LKR 500,000. Urban council areas had lower fees of LKR 10 million for entry and LKR 800,000 annually. Non-urban regions were charged LKR 1 million for entry and LKR 600,000 annually. Large-scale establishments exceeding LKR 1 billion in investment faced the highest fees: LKR 15 million for entry, LKR 1.5 million annually, and a security deposit of LKR 500,000.
These policies were formalized through Gazette No. 03/2024, effective February 1, 2024, ensuring compliance with constitutional provisions and excise regulations while augmenting state revenue.
Financial Impact
The policy generated over LKR 3.1 billion in revenue between February and October 2024. By year-end, this figure was projected to surpass LKR 4 billion. For 2025, the government plans to issue 250–300 additional licenses through competitive bidding, with a minimum bid set at LKR 25 million per license. This approach aims to further boost revenue and fund anti-alcohol campaigns.
Transparency and Accountability
Wickremesinghe underscored that all licenses were issued in strict adherence to legal frameworks. Applications were reviewed by the Commissioner General of Excise, and public complaints against license holders led to suspensions, upheld by judicial oversight. During the 2024 presidential election period, the Election Commission recommended compliance with established procedures to ensure impartiality.
Long-term Vision
In defending the excise license policy, Wickremesinghe framed it as a pragmatic response to fiscal challenges. He dismissed claims that the licenses were "giveaways," describing the policy as a strategic move to generate sustainable revenue for economic recovery. He urged Parliament to either continue with the existing framework or draft a new excise law, stressing the need for prioritizing long-term stability over short-term political gains.
Conclusion
The excise license policy reflects the government’s strategy to stabilize Sri Lanka’s economy during a critical period. Wickremesinghe’s statement emphasizes transparency, accountability, and a long-term vision for economic recovery. By implementing structured regulations and enhancing state revenue, the policy lays the foundation for sustainable development amidst significant fiscal challenges.
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