In a landmark ruling, Colombo Additional Magistrate Pavithra Sanjeewani today ordered Randeniya Distilleries Company to pay Rs. 1.35 billion in evaded taxes, including income tax, VAT, and Nation Building Tax, for the period between 2012 and 2015.
The case, filed by the Commissioner General of Inland Revenue, alleges the Kadawatha-based company deliberately avoided tax payments during these years. Directors Piumi Wijewikrama, Sarath Kumara Wijewikrama, Buddhika Wijewikrama, and another female director were also named as respondents in the lawsuit.
After hearings before Additional Magistrate Bandara Eelanga Singha, the court ruled the distillery must settle the outstanding amount with the government. The judgment marks a significant enforcement action in Sri Lanka’s ongoing efforts to combat corporate tax evasion.
The case, initiated last year, highlights the Inland Revenue Department’s strengthened measures to recover unpaid taxes from businesses. Legal experts suggest this ruling may set a precedent for similar tax evasion cases pending before Sri Lankan courts.
