Sri Lanka’s beer production rose 5% and liquor production increased 17% in 2025, the Alcohol and Drug Information Centre (ADIC) said on Monday, citing the absence of any price revision since early 2024 as the key driver of higher consumption.
The Centre said stable nominal alcohol prices, against a backdrop of inflation and rising personal incomes, had effectively widened purchasing power and lifted consumption volumes. Excise revenue had grown over the period, but the social and health costs of higher consumption “outweigh the gains in tax revenue,” the Centre warned.
ADIC pointed to two recent excise increases as evidence that price moves change behaviour. A 20% increase in alcohol excise duty in 2023 reduced sales by 8.3 million litres compared to 2022 while government tax revenue rose by Rs. 11.6 billion. A further 20% tax increase at the start of 2024 reduced sales by 430,000 litres compared with the prior year, with tax revenue climbing to Rs. 42.15 billion.
The data lands during a period when the Excise Department has reported record Q1 revenue, and as the counterfeit-liquor enforcement track has expanded across the Colombo district. Calls for a fresh price revision typically intersect with budget season; no new excise adjustment has been announced for 2026.
Source: Ada Derana.
