Information revealed before the Parliamentary Committee on Public Finance has indicated that financial irregularities may have occurred in relation to the application of security stickers on alcoholic beverage bottles.
The Committee on Public Finance stated that the cost of printing the security stickers affixed to liquor bottles has not been reduced despite the use of digital printing methods.
The Committee met recently at the Parliamentary Complex under the chairmanship of Dr Harsha de Silva.
Senior officials of the Excise Department were summoned before the Committee to review the Department's performance.
Speaking during the proceedings, Deputy Excise Commissioner M. Jayantha Silva stated that digital security markings are used on the products of two companies because moisture accumulates on the bottles during the cooling process, making it difficult to affix paper stickers.
He further said that around 80 per cent of bottles carry digital security markings.
According to him, the cost remains US$7.99 per 1,000 units even when digital printing is used.
It was also revealed that the security sticker cannot be affixed to bottles produced by two local manufacturers of liquor and beer. As a result, the security feature is applied directly onto the bottle through digital printing.
During the discussion, Committee Chairman Dr Harsha de Silva questioned the arrangement.
"The issue is with this sticker. What we are concerned about is production and how much is being sold illegally."
Deputy Excise Commissioner M. Jayantha Silva:
"The sticker programme began in 2022. The agreement with the current supplier will expire on 2 January 2027, and steps are being taken to call for a new tender. The supplier is responsible for printing the stickers, while the liquor manufacturer applies them. We pay US$5.99 per 1,000 stickers. Including port charges and customs duties, the total cost comes to US$7.99. One local company has a very high production speed, while the other cools its products, leaving moisture on the bottles. As a result, paper stickers cannot be applied. Therefore, digital security markings are used for those two companies. More than 80 per cent of the bottles now use the digital method rather than physical stickers."
"How much is charged when the digital method is used?"
"But there is no sticker involved. You said the paper sticker costs US$5.99. That cost does not apply here. There is no physical application process with digital printing. Moving from paper stickers to digital printing should reduce the cost by around 80 per cent. Why, then, is US$5.99 still being paid?"
"That is the amount specified in the tender, Sir."
Deputy Excise Commissioner Silva acknowledged that although the actual cost is lower when digital printing is used, the company concerned continues to receive the payment stipulated under the tender agreement for printing the security stickers.
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