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Sri Lanka legal alcohol sales down 19-pct in 2023
  • In 2023, legal alcohol sales in Sri Lanka saw a 19 percent decline due to an economic crisis and tax hikes, with alcohol production decreasing from 43.3 million liters in 2022 to 35.1 million liters, marking an 8.2 percent decrease.

 

In 2023, legal alcohol sales in Sri Lanka experienced a notable decline of 19 percent, attributed to an economic crisis and tax hikes, as highlighted by State Minister Ranjith Siyambalapitiya. Despite increased issuance of liquor permits by the government, there was a significant drop in alcohol consumption. Comparing data from 2022 to 2023, alcohol production decreased from 43.3 million liters to 35.1 million liters, marking an 8.2 percent decline. By January 2024, the government had issued 5,730 liquor licenses across 30 categories, a rise of 214 licenses from the previous year. Notably, 147 of these licenses were allocated to the tourism sector.

Moreover, the production of commonly used 180ml alcohol bottles, particularly favored by lower-income individuals, decreased by approximately 14.5 percent to 15 million bottles. Larger bottle sizes, such as the 750ml and 375ml variants, also saw reductions in production. Despite concerns about increasing alcohol use due to regular sales, Minister Siyambalapitiya emphasized that illegal alcohol remains prevalent, even in areas without legal outlets. Consequently, the focus should be on combating illicit liquor operations to recover lost tax revenue rather than promoting alcohol consumption. The government's approach includes raising permit prices and imposing high excise duties, with taxes accounting for about 75 percent of the sale price.


Sri Lanka legal alcohol sales down 19-pct in 2023 | Economy Next

Economy Next
2024-05-09