Excise revenue up over 60% on liquor sticker system

Colombo, April 2 (Daily Mirror) - The Excise Department of Sri Lanka has recorded a revenue growth of over 60 percent over the past three years, attributing the increase primarily to the implementation of security stickers on liquor bottles.

According to the department, the initiative—introduced in January 2022—was aimed at ensuring the proper collection of taxes from all liquor produced in the country. The project mandated the affixing of security stickers on every liquor bottle manufactured locally.

Following the launch of the programme, excise revenue rose significantly. The department reported earnings of Rs. 170 billion in 2022, marking an increase of Rs. 30 billion compared to 2021.

Revenue continued to grow in subsequent years, reaching Rs. 178 billion in 2023 and Rs. 226 billion in 2024.

In the first nine months of 2025, from January 1 to September 30, the department generated Rs. 190 billion in excise revenue. This exceeded the government’s target of Rs. 177 billion for the same period by Rs. 13.4 billion. The total revenue target for 2025 has been set at Rs. 242 billion.

Former Excise Commissioner General M.B.N.A. Pemaratne noted that revenue performance for the period surpassed 107 percent of the target, reflecting an 18 percent increase compared to 2024.

At the initial stage of the project, concerns were raised that several liquor manufacturers had failed to comply with the requirement to affix security stickers, resulting in a loss of nearly 50 percent of potential tax revenue. In response, the department intensified investigations and conducted raids to enforce compliance.

Authorities said that the initiative has not only improved tax collection but also contributed to enhancing product quality and enabling the easy identification of counterfeit or substandard liquor.

The security sticker programme officially commenced on January 3, 2022, with the contract awarded to Madras Security Printers. Under the agreement, 1,000 stickers are supplied at a cost of US$ 5.99, with each sticker costing approximately Rs. 1.21, according to the Ministry of Finance Sri Lanka.

The Ministry further said that the project covers 70 licensed liquor manufacturers and 18 liquor importers across the country. Two types of security seals—Foolproof Stickers and Digital Printing—have been introduced, depending on the technological capacity of the manufacturers.

Additionally, a new application related to the sticker system has been developed and submitted to the Computer Emergency Readiness Team Sri Lanka, based on recommendations made by the Committee on Public Enterprises.