LEN - www.lankaenews.com | Corn-Based Ethanol Fuels the No. 2 Liquor Racket..! Connection to High Officials Suspected..!

Corn-Based Ethanol Fuels the No. 2 Liquor Racket..! Connection to High Officials Suspected..!

-Reported by a Special Correspondent

(Lanka-e-News -08.Nov.2024, 11.45 pm) Although there have been media reports about corn being used for ethanol production, no details about the individual responsible have emerged until now. However, the truth came out during a case examined in the Anuradhapura Magistrate’s Court on November 6. In a case filed by Nochchiyagama PDG Agro Business against Arjun Aloysius, Chairman of the Mendis Company, who is currently in Welikada Prison on charges of evading government taxes, it was revealed that large-scale fraud involving corn for ethanol production has been taking place, with over 50 million rupees involved. This unveils that Arjun Aloysius is a major figure in the corn-to-ethanol production racket.

Extra Profit

While ethanol has traditionally been produced from molasses, a byproduct of the Sevanagala and Hingurana sugar factories, large-scale ethanol producers such as Vajira Gunasekara (son of former Minister Premalal Gunasekara) and Arjun Aloysius recently began using corn for ethanol production. This method yields an additional profit of 60 rupees per liter compared to molasses-based production, leading to a potential gain of 15 rupees per bottle for liquor manufacturers.

Impact on Essential Supplies

Corn is crucial for producing animal feed, including chicken feed, as well as for nutrition products like Triposha. Since local corn production is insufficient, Sri Lanka already relies on imports to meet demand. Using corn for ethanol production, therefore, diverts a vital food supply, increasing the need for imports and driving up costs in foreign currency. If this practice continues, it could lead to shortages in animal feed, ultimately impacting egg and chicken prices directly.

A Surprising Revelation

This illegal ethanol production activity is reportedly centered at an ethanol plant owned by Arjun Aloysius in Pasikudah, capable of producing approximately 20,000 liters of ethanol per day, according to sources from the Excise Department. However, investigations show that, since January, only 68,000 liters of ethanol have been officially released into the market, an amount that could be produced in just three days by the plant.

The No. 2 Product

It has now become clear that Arjun Aloysius hasn’t abandoned ethanol production; instead, he’s allegedly engaging in what is known as “No. 2” production—illicit liquor. This type of liquor, manufactured to evade taxes, involves significant collusion with Excise Department officials. Arjun Aloysius and Vajira Gunasekara are believed to be the masterminds behind this operation, causing the government to lose billions in revenue annually. Despite some hope among law-abiding officials that the racket might be curtailed under the current administration, confidence is waning.

Who is “Finlandia”?

This scandal has more twists. On November 7, an individual named Tharindu Lakshan, a senior official of the liquor company “Finlandia,” arrived at the Excise Department headquarters in Rajagiriya, requesting a meeting with the Excise Commissioner General, which was initially denied. However, after a call from a prominent lawyer from the National People’s Power party, the Commissioner General agreed to the meeting.

Meanwhile, reports suggest that Vajira Gunasekara, who has been supplying No. 2 liquor to bars across the North and East regions, is facing increased competition from “Finlandia.” Given the current developments, some speculate that even officials from the Finance Ministry might unknowingly be entangled in the growing liquor mafia.

Therefore, the public is urging the President and the Excise Department to take action against these major players in the illicit liquor business.