DCSL has seen a fall in sales in the past year.“Looking ahead, it is evident that the current tax policies, if maintained, will have detrimental effects on the legal alcohol sector,” Jayawardena told shareholders in the annual report.

Meanwhile DCSL said taxes were hiked from 5,000 rupee to 6,000 rupees per absolute proof liter in July 01, 2023 and another 840 rupees taking the duty to 6,840 rupees.

“These hikes have not only increased the price of alcohol products by approximately 58% but have also widened the gap between legal and illicit alcohol markets, inadvertently driving growth in the latter,” Jayawardena said.