Presidential probe into SriLankan
Alcohol worth USD 175,107 ordered tax free

Without authority to make such purchases 

By Rathindra Kuruwita-June 28, 2018, 11:29 pm

Phoenix Duty Free Services company, the concessionaire for inflight duty free services for SriLankan had, between 2012 -2017, ordered alcohol worth USD 175,107.85, on tax free basis, in 2011, without having the necessary authority to make such a purchase, Rashmore Ferdinands, Manager Inflight Services, Administrations and Duty Free told the Presidential Commission of Inquiry (PCoI) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka yesterday.

The invoice for 400 cases of Johnnie Walker Black Label Whisky, 88 cases of Blue Label Whisky, 144 cases of Gold Label Whisky and 80 cases of Gordon’s Gin had been sent on Nov. 10, 2011. However, at that time Phoenix only had the authority to purchase cosmetics and fragrances for inflight sale for SriLankan Airlines.

"However, the Board of Directors approved this order on November 28, 2011. Almost three weeks after the original purchase," he said.

Earlier it was revealed that the SriLankan Airlines Board of Directors had granted Phoenix Duty Free Services Company a contract as the concessionaire for inflight duty free services for SriLankan Airlines between 2012 and 2017, without any tender procedure. 

Ferdinands said that after the management had been taken over from Emirates, King Power Traveler Company was contracted to provide cosmetics and fragrances inflight duty free items to SriLankan Airlines. The contract was given for periods of six months each.

However, in 2010 SriLankan management called for tenders for supplying inflight duty free cosmetics and fragrance items. The tender was awarded to Phoenix Rising Ventures, (later known as Phoenix Duty Free Services). Until April 2012, it had no authority to purchase alcohol on tax free basis.