The Department of Excise collected Rs. 141.5 billion for the government in the first half of 2026, comfortably exceeding the target set for the period, the department has announced.
The revenue target assigned to the department for the six months ending June 30 was Rs. 119.3 billion, meaning collections came in at 118.6% of target — some Rs. 22.2 billion above what the Treasury had expected. The department has been given a full-year target of Rs. 245 billion for 2026.
Measured against the same period last year, when the department collected Rs. 117.03 billion, first-half revenue this year stands at 120.91% of the 2025 figure — an increase of close to 21%.
Excise Commissioner General M.B.N.A. Pemarathne attributed the performance to the commitment and supervision of excise officers at every grade.
He said several enforcement measures had helped both raise and protect revenue: continuous and stricter supervision of distilleries and bonded warehouses, the introduction of new security stickers, intensified investigation of illicitly produced spirits, and regular inspections of manufacturing plants and licensed premises.
Volumes rose alongside prices
The figures also point to a tension in policy. The government has periodically raised liquor prices with the stated aim of reducing alcohol consumption, yet the volume of absolute alcohol used in liquor manufacturing grew over the same period.
The department said 19.6 million litres of absolute alcohol were used in production during the first half of 2026, up from 17.25 million litres in the first half of 2025 — a rise of about 13.6%.
That means the revenue increase was not driven by higher duty rates alone. More alcohol was produced and taxed this year than last, even as prices at the point of sale went up.
Excise duty is one of the state’s largest domestic revenue lines, alongside Customs and the Inland Revenue Department, and its performance is closely watched as the government works to hold its overall revenue targets. The department reported reaching 110% of its first-quarter target earlier this year, and the half-year result extends that run.
Figures are as released by the Department of Excise. Percentages above are expressed as a share of the comparison figure, as stated in the department’s release.
