Sri Lanka sees surge in alcohol production and consumption

Statistics indicate that alcohol consumption in Sri Lanka is on the rise, according to the Alcohol and Drug Information Centre.

Based on 2025 data, local beer production has increased by 5% and liquor production by 17%, suggesting a corresponding rise in alcohol consumption, the Centre said.

It further noted that the lack of a price revision in alcohol since the adjustment made at the beginning of 2024 has been a key contributing factor to this trend.

According to the Centre, alcohol prices remaining stable despite inflation and rising personal incomes has significantly increased purchasing power, contributing to higher consumption levels.

While excise revenue has shown some increase during this period, the Centre warned that the social and health impacts of rising alcohol consumption outweigh the gains in tax revenue.

It also highlighted that in 2023, a 20% increase in alcohol excise duty led to a reduction of 8.3 million litres in alcohol sales compared to 2022, while government tax revenue rose by Rs. 11.6 billion.

Similarly, following a further 20% increase in taxes on alcohol at the beginning of 2024, alcohol sales fell by 430,000 litres compared to the previous year, while tax revenue increased to Rs. 42.15 billion, the Centre added.