By Madhusha Thavapalakumar
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DCSL Chairman Harry Jayawardena[/caption]
DCSL Chairman Harry Jayawardena[/caption]
The largest liquor manufacturer in the country, Distilleries Company of Sri Lanka PLC (DCSL), is hoping to recommence liquor sales as soon as possible, according to a disclosure issued by its parent company Melstacorp PLC yesterday (6) to the Colombo Stock Exchange (CSE).
“We would be working towards getting the beverage sector functioning normally as soon as possible, which would cushion to a great extent (the) adverse impact on the company's finances. This would be the priority,” Melstacorp PLC Managing Director Amitha Gooneratne stated. The Government imposed an islandwide curfew on 20 March which compelled all businesses excluding essential services to be closed down. Even though the curfew has been lifted and re-imposed a number of times since then, liquor shops were asked to remain closed. In mid-April, liquor shops were allowed to be opened in low-risk districts where curfew was lifted, but were asked to close the following day due to consumers’ failure to maintain social distancing guidelines outside “wine stores”. Gooneratne stated that restrictions placed on liquor sales is significantly impacting both the topline and bottom line revenue of the company. “It is indeed significantly impacting the Government’s revenue and it is imperative that the present curtailment on the sale of liquor is normalised in the not too distant future,” Gooneratne noted. DCSL is a diversified Sri Lankan conglomerate listed on the CSE with a market capitalisation of $ 600 million. It was one of the first Sri Lankan companies to be listed in Forbes' Best Managed Companies (outside the US) with revenue under $ 1 billion. Melstacorp PLC is essentially an investment company with diversified holdings in listed and unlisted companies in many industries and is owned by business tycoon Harry Jayawardena, who also serves as Chairman of DCSL. A significant portion of the Melstacorp revenue is comprised from the turnover of subsidiary companies, notably DCSL PLC, Aitken Spence PLC, Balangoda Plantations PLC, Madulsima Plantations PLC, Lanka Bell Ltd., Continental Insurance Lanka Ltd., and Periceyl (Pvt.) Ltd. Sri Lanka’s liquor industry, one of the top contributors to the country’s tax revenue, lost its annual Sinhala and Tamil New Year and Easter sales this year owing to the ongoing curfew imposed to curtail the spread of Covid-19 within the country. As noted by the industry, the losses could be in the billions, as Easter and New Year sales collectively bring in significant revenue, similar to that of Christmas any given year. Speaking to The Sunday Morning Business last month, an official from a renowned liquor manufacturer stated that the company had lost sales to the tune of about Rs. 3 billion, which they were expecting to make during this festive season.