Health authorities eye phased return of sugar tax as ‘silent killer’ claims 1 in 4 adults

Dr. Chandana Gajanayake

Dr. Manilka Sumanatilleke PIX BY NISAL BADUGE

By Nishel Fernando

Sri Lankan health authorities are currently in negotiation with the Treasury to reintroduce the sugar tax in a “phased-out manner”, a move pitched as a critical intervention to save the country’s crumbling public health infrastructure from an escalating diabetes epidemic.

The proposal was disclosed yesterday, during the launch of the Union Assurance ‘Suwamaga Impact Report 2025’, at Hilton Colombo Residences.

Colombo District Director Health Services Dr. Chandana Gajanayake revealed that the Health Ministry is actively lobbying for the tax, originally introduced in 2016-2017 but subsequently diluted and rolled back by 2019, due to industry lobbying and economic shifts.

“As the Health Ministry, we are continuously trying to have a tax for high sugary items. We believe we will be able to work that out with the Treasury in the near future. Now that the businesses are stabilising, we can look at introducing this in a phased-out manner,” Dr. Gajanayake said.

He noted that while the government supports the move as a health policy, fiscal concerns regarding government revenue and strong resistance from the corporate sector remain key hurdles.

Medical experts at the forum validated the colloquial description of diabetes as the “mother of all diseases”, warning that it is no longer just a blood sugar issue but the primary gateway to Sri Lanka’s most expensive medical burdens, including heart disease, stroke and chronic kidney failure.

Data from the International Diabetes Federation (IDF) and local health surveys paint a grim picture. The recent findings indicate that nearly one in four Sri Lankan adults (approx. 23 percent) now suffers from diabetes, a rate significantly higher than the global average. 

Furthermore, the IDF’s 2025 projections estimate that Sri Lanka is home to over 1.1 million adults living with the condition, with a staggering 40 percent remaining undiagnosed until complications strike.

“Once a patient reaches the stage of kidney failure, there are no simple answers. The only solutions are transplants or dialysis, which place a massive burden on the state and family,” Dr. Gajanayake warned.

While the local manufacturers argue that taxes hurt the industry, global data suggests that well-designed levies drive innovation rather than destruction.

Health authorities pointed to the United Kingdom’s Soft Drinks Industry Levy as the gold standard. Introduced in 2018, the UK tax spurred a massive “reformulation” wave, removing 45 million kilogrammes of sugar from soft drinks annually, as the manufacturers lowered sugar content to avoid the tax. Consequently, sugar consumption from soft drinks in the UK dropped by over 35 percent.

Similarly, Mexico—which introduced a one-peso-per-litre tax in 2014—saw a 37 percent reduction in sugary drink purchases within two years, with the consumers shifting to water and untaxed beverages.

Diabetes Association of Sri Lanka President Dr. Manilka Sumanatilleke proposed that Sri Lanka adopt a similar smart-tax model using the existing Traffic Light labelling system.

“We have a traffic light system where high sugar drinks are labelled red. We can propose a tax specifically on those ‘red’ labelled products. It won’t be difficult because the framework existed earlier,” Dr. Sumanatilleke said.

The discussion also highlighted a shifting demographic. While diet remains a primary cause, Dr. Gajanayake identified workplace stress as a new, silent driver of diabetes among Sri Lankan youth.

Citing recent screenings at a major corporate institution, he revealed that the employees as young as 25 were testing positive for high blood sugar.

“We found that high stress levels were a major factor. Departments are understaffed and management is demanding, creating a high-pressure environment. These employees work from 7:00 a.m. to 9:00 p.m., leaving no time for physical well-being,” he averred.