Sri Lanka’s alcohol production has dropped by 19% in 2023, according to Minister of State for Finance Dr. Ranjith Siyambalapitiya.
The Minister notes that there has been a fall of approximately 15 million in the manufacturing of 180ml alcohol bottles, which have the largest sales.
The quantity of alcohol produced in 750ml bottles decreased to 39.5 million in 2023 from 57.7 million in 2022.
Approximately 36.6 million 375 ml bottles were manufactured in 2023 compared to the 375ml bottles produced in 2022.
In 2022, 105.8 million 180 ml bottles were produced; by 2023, that number had reduced to 90.5 million, according to Minister Siyambalapitiya.
The Ministry of Finance claimed that 214 new alcohol licenses have been given in 2023 alone, 147 of which are F.L. 7, 8, and F.L. 11 types that are intended for the travel and tourism sector.
Minister Siyambalapitiya added that the Excise Department had issued 5730 alcohol licenses in total.
In spite of the belief that the opening of legal alcohol establishments has led to a rise in alcohol consumption, the Minister said that illegal alcohol is still widely available in places where it is not legal.
Accordingly, Minister Siyambalapitiya said that the best course of action is to prevent them and take steps to recover the lost tax income.
The Minister also brought up the fact that alcohol licensing fees have also increased, despite the government's stated policy of not encouraging alcohol consumption in any circumstance.
He mentioned that taxes account for 75% of the cost of an alcohol bottle, with alcohol bearing the majority of these levies.
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