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More protests against Batticaloa liquor company, petition
View(s):Hundreds protested at Oddamavady and Valachchenai in the Batticaloa district on Friday against the setting up of an ethanol factory by a liquor company headed by Arjun Aloysius, who is associated with the Central Bank bond issue now under investigation.
“Today, we proceed a mass rally [sic] against this liquor factory with many thousand people including all three communities,” a petition addressed to President Maithripala Sirisena by demonstrators said. “Considering and respecting the opinion of the people, please make arrangements to ban the construction of the liquor factory place considering the future of younger generation and their educational activities.”
Friday's protest at Oddamavady
Last year, the Excise Department granted approval to WM Mendis & Co Ltd (of which Mr. Aloysius is Chairman) to set up a grain-based extra neutral alcohol (ENA) distillery on the Fiscal Policy Department’s instructions. Both fall under the purview of the Finance Ministry headed by Ravi Karunanayake.
The Fiscal Department’s first communication to the Excise Department saying the distillery has been approved as a pilot project is dated May 2015. This is just 18 weeks after the presidential election was won, among other things, on a promise to eradicate drugs and alcohol.
In March 2016, WM Mendis & Co wrote to the Commissioner General of Excise, seeking a distillery licence to commission the plant. This was granted within days. The company claims the plant will cost an astronomical Rs. 4.5 billion. It is to be built on a 19-acre property bought at Rs. 10.73 million.
Under a budget proposal this year, WM Mendis is also tipped to receive a 100 percent capital allowance for locating its distillery in the East. The 2017 budget grants the concession on investment of not less than US$ 3 million in fixed assets in just the Uva and Eastern Provinces, provided it creates at least 250 jobs.
But the plan is being opposed by local authorities. Construction is currently stopped on an order of the Koralaipattu Pradeshiya Sabha. The Eastern Provincial Council called for the project’s suspension as far back as September 2016. In November, the Koralaipattu-Valachchenai Divisional Coordinating Committee also passed a resolution against it.
On Friday, around 2,000 people turned up for the protest organised by the All Ceylon Jamiyyathul Ulama. Their petition was accepted by the Koralaipattu PS and Parliamentarians Ameer Ali, S Yogeswaran and P Ariyanenthiran.