The Alcohol and Drug Information Centre Sri Lanka says alcohol consumption in Sri Lanka is on the rise, based on the latest 2025 data.
According to the centre, domestic beer production has increased by 5%, while liquor production has risen by 17%, indicating a corresponding increase in consumption.
ADIC noted that one key reason behind this trend is the lack of price revisions since early 2024. With alcohol prices remaining relatively stable despite inflation and rising incomes, purchasing power has increased, making alcohol more accessible.
While excise revenue has shown some growth, the organisation warned that the social and health consequences of increased alcohol consumption outweigh the financial benefits.
The centre also highlighted the impact of previous tax increases. A 20% tax hike in 2023 led to a reduction of 8.3 million litres in alcohol sales compared to 2022, while government revenue increased by Rs. 11.6 billion.
Similarly, another 20% tax increase at the beginning of 2024 resulted in a further drop of 430,000 litres in sales, with tax revenue rising to Rs. 42.15 billion.
ADIC emphasised that pricing policies play a crucial role in controlling alcohol consumption and urged authorities to consider both economic and public health impacts when making future decisions.
