Liquor, cigarette sales drop as strict regulations take effect

Sri Lanka’s liquor and cigarette sales have fallen considerably after the introduction of strict legal measures by the judiciary and police under the Tobacco and Alcohol Act which was enacted in December last year, official sources told The Sunday Times.

Stern regulatory measures taken by the Government on public advertisements and scenes in films and tele-dramas depicting tobacco and liquor consumption have contributed immensely in the reduction in the volume of liquor and cigarette sales countrywide, they said. Government revenue earned normally through excise duty and taxes has been reduced by several millions of rupees as a result of its temperance policy which resulted in the reduction of alcohol and tobacco consumption during the past year, the sources said.

Health Minister Nimal Siripala de Silva said that alcohol and tobacco companies are constantly pressing the Government to relax the regulations but the Government is holding firm in its decision. A Ceylon Tobacco Company spokesperson told The Sunday Times there was around a 10 percent drop in cigarettes sales during the first nine months of this year, compared to the corresponding period last year. She said total sales volumes declined due to the implementation of the Tobacco and Alcohol Act as well as due to excise duty increases in the domestic and export market. However the anti-tobacco lobby claimed the volume decline was due to its relentless campaign.

Excise Commissioner Wasantha Hapuarachchi said there was a drop in liquor production during the first nine months of this year compared to corresponding periods of 2005 and 2006. The liquor production growth was 15 percent and 17 percent in 2005 and 2006, respectively but it dropped to 0.5 percent during the first nine months of this year. However he said his department had earned Rs. 17,400 million during the first nine months this year compared to Rs. 15,500 million in the corresponding period last year.

The Excise Department has conducted 37,083 raids to crack down on illicit liquor dens while locals have consumed over 32 billion litres of hard liquor and 67 billion litres of soft liquor, according to Department figures of last year.