Ten distillery companies in Sri Lanka have defaulted on taxes amounting to Rs 6.9 billion in 2023, as disclosed in a report presented by the Ways and Means Committee to Parliament today.

Among the prominent names involved are W.M. Mendis & Company, Wayamba Distilleries, and Globe Blenders.Following the committee's directive, four companies, including W.M. Mendis & Company and Synergy Distilleries, faced manufacturing and distribution bans due to expired excise licenses.

However, some companies, such as W.M. Mendis & Company and Finland Distilleries, have begun to settle their outstanding taxes, making initial payments totaling Rs 906,176,439.51.

Meanwhile, Wayamba Distilleries has contested the cancellation of its licenses, initiating legal action in the Court of Appeal. Concerns have also been raised regarding companies like Globe Blenders and Kalutara Cooperatives Distilleries, which allegedly terminated operations to evade tax payments.

The report further highlighted lax enforcement by the Ministry of Finance and the Excise Department, as fake security tax stamps on liquor bottles went unchecked until the committee intervened, prompting raids to seize bottles with counterfeit labels.