Economic loss from tobacco and alcohol amounts to LKR 241 billion yearly

By Huzefa Aliasger and Pranavesh Sivakumar  

The Economic loss from consumption of alcohol and tobacco in Sri Lanka amounts to Rs. 241 billion annually which is one-fifth of the total economic loss  caused by cyclone Ditwah and 40 percent of the total budget allocated by the government for healthcare, as per the Alcohol and Drug Information Centre (ADIC).  

The ADIC says that 19.4 percent overall (3.2 million adults), 36.2 percent of men, and 4.9 percent of women currently use tobacco and tobacco smokers spend Rs. 520 million on cigarettes per day which annually leads to 1.5 percent of the country’s Gross Domestic Product (GDP).  

According to UN Comtrade, Sri Lanka is a net importer of tobacco leaf, importing nearly US$61 million in 2024, compared to exports of almost US$28 million. It is also a net importer of cigarettes, importing over US$6 million in cigarettes in 2024, compared to over US$2 million in exports.  

Nearly 50 tobacco-related deaths occur daily. Tobacco is a key risk factor for NCDs, which account for about 83.9 percent of deaths. The Global Tobacco Industry Interference Index (TII) Index 2025 assessed 100 countries across multiple regions, examining tobacco industry interference and government responses between April 2023 and March 2025.  

Sri Lanka ranked 45th in the Global TII 2025, with its score worsening by three points since 2023, indicating increased tobacco industry interference and weaker safeguards. Key factors contributing to Sri Lanka’s decline include conflicts of interest involving senior government officials and the tobacco industry’s use of corporate social responsibility initiatives to improve its public image.  

ADIC urges policymakers to prioritise public health over commercial interests, fast-track delayed tobacco control policies, and actively identify and prevent all forms of tobacco industry interference to protect future generations.