A group of licensed liquor retailers has filed a writ petition before the Court of Appeal seeking an order directing the Commissioner General of Excise and others not to grant approval for the use of rice and sugar as primary raw materials in beer production in Sri Lanka.

The petition names the Commissioner General of Excise, officials of the Department of Excise, the Sri Lanka Standards Institution, the Attorney General, the Inspector General of Police and several others as respondents, Ada Derana reported. The petitioners contend that most current manufacturers are using rice and sugar as the principal ingredients in beer production in breach of the Excise law.

They further argue that rice — produced with significant public subsidies from state funds — is being diverted into commercial industries such as beer production, an outcome they say has adverse effects on the national economy. The petition asks the court to bar excise approvals for rice- and sugar-based brews going forward.

The challenge lands at a sensitive moment for the alcohol regulatory framework. The Excise Department has steadily widened the licensed market in recent years, and beer producers — including state-controlled Lion Brewery and other operators — have at times shifted formulations toward locally available inputs as a hedge against import-cost pressure. The retailers’ petition seeks to fence the brewing perimeter back to traditional malt-and-hops grain bases.

The case adds to a string of regulatory court actions this month, including the writ petition that prompted the Supreme Court’s June 27 watchdate on the 2020 sugar tax FR. A first-hearing date for the new petition has not been disclosed; the Court of Appeal will determine whether to issue notice on the respondents in due course.

Source: Ada Derana.