Dec 16, 2016

Time given to file objections in Lion Brewery case Featured

The court of appeal yesterday (15) granted time until January 27 for minister Ravi Karunanayake and other respondents to file objections to a petition that challenges nearly Rs. 6,000 million customs levy concessions being given to Lion Brewery (Ceylon) PLC and three other companies for a period of four months.

CA judge S. Thurairaja took up the writ petition by six Buddhist monks that seeks the cancellation of the tax concessions and the use of the said money for public welfare.

Lion Brewery’s beer production came to a standstill following the flooding of its brewery at Biyagama.

After it informed that it could not supply for the demand, Karunanayake has given the company a 60 per cent tax concession to import beer.

Market analysts question the measure in view of the fact that Lion Brewery has insurance coverage to seek damages for production suspensions and note that not all companies whose factories had been flooded have been given such concessions.

Lion Brewery is owned by Harry and Mano Selvanathan brothers who are close friends of many top ruling politicians.