July 09, Colombo (LNW): The Criminal Investigation Department (CID) has launched an extensive investigation following the discovery of a large stock of counterfeit liquor in Malambe bearing authentic Excise Department security stickers, raising fresh concerns over possible weaknesses in the country’s liquor control system.
The operation began after police raided a house along Sudarshana Mawatha in Malambe, where officers recovered 18,575 quarter bottles of counterfeit locally branded arrack containing approximately 3,345 litres of liquor. Several individuals believed to be involved in the illegal manufacturing and distribution network were arrested during the raid.
Investigators initially suspected that the bottles had been fitted with forged Excise security labels to imitate legitimate products. However, preliminary examinations have revealed that the stickers are genuine and appear to have been officially issued by the Department of Excise, adding a new dimension to the investigation.
The unexpected finding has prompted the CID to focus on how authentic security labels intended for licensed manufacturers may have entered the hands of those producing illicit alcohol. Authorities are examining every stage of the distribution process to determine whether the labels were unlawfully obtained, diverted after printing or acquired through another channel.
Sri Lanka introduced mandatory security stickers for all legally manufactured liquor bottles in 2019 as part of a tax protection initiative designed to combat illicit alcohol production and safeguard government revenue. The contract to produce the high-security labels was awarded to Madras Security Printers (MSP).
Despite the introduction of the system, law enforcement agencies have, on several occasions over recent years, recovered counterfeit liquor carrying what were later confirmed to be genuine Excise security stickers. The latest seizure has renewed concerns about the integrity of the supply chain and the potential financial losses suffered by the State through illegal alcohol production.
Investigators are also examining whether there were any lapses in the handling or distribution of the labels after they were printed, while officials are expected to review existing security protocols governing the issuance of Excise stickers.
So far, six suspects, including a wealthy businessman and a former member of the armed forces, have been taken into custody in connection with the case. The CID is continuing inquiries to establish the origin of the authentic security stickers and identify any additional individuals who may have facilitated their unlawful use.