Statistics show that alcohol consumption in Sri Lanka is on the rise, according to the Alcohol and Drug Information Centre.
Domestic beer production has increased by 5% and liquor production by 17%, indicating a corresponding increase in alcohol consumption, the centre points out. These statistics are based on 2025 data.
The agency states that this is due to the fact that alcohol prices have not increased since the price increase at the beginning of 2024.
While excise revenue has shown some increase during this period, the center warns that the social and health impacts of increased alcohol consumption outweigh the gains in tax revenue.
A 20% increase in alcohol tax in 2023 led to a reduction in alcohol sales by 8.3 million liters compared to 2022, and government tax revenue increased by 11.6 billion rupees.
Similarly, after a further 20% increase in taxes on alcohol at the beginning of 2024, alcohol sales fell by 430,000 liters compared to the previous year, and tax revenue increased to 42.15 billion rupees, the center further points out. However, many parties have pointed out that the production and sale of substandard illegal alcohol is increasing compared to the decrease in the sale and production of legal alcohol.