Sri Lanka lost Rs.237 billion on economic, health costs associated with alcohol in 2022 - UNDP

By Huzefa Aliasger   

Sri Lanka’s health and economic costs associated with alcohol was estimated at Rs. 237 billion in 2022, an amount that far outweighed total excise tax revenue earned, according to a study done by the United Nations Development Programme (UNDP).   

The Alcohol and Drug Information Centre (ADIC) citing the UNDP study in a media release said that consumption of alcohol has a negative impact not only on the consumer but also on the economy.  

 “It is also evident that alcohol does not contribute positively to a country’s economy. Although the government’s revenue from alcohol taxes in 2022 amounted to Rs. 181.1 billion, a study by the United Nations Development Fund revealed that the health and economic costs associated with alcohol use in our country totaled to Rs. 237 billion within the same year.” ADIC said   

Addressing various violations of laws by the alcohol industry, ADIC says “The National Authority on Tobacco and Alcohol (NATA) Act No. 27 of 2006 prohibits alcohol advertisements in our country. However, in violation of this law, the alcohol industry continues to promote alcohol through subtle and unethical strategies, targeting the entire population, particularly children and youth, the future of our nation.”   

The data given by ADIC indicates a decline in total alcohol production after 2022, and a continued rise in excise tax revenue, possibly influenced by the government’s successive increases in excise duties on alcohol products; a 20 percent increase in June 2023, a 14 percent increase in January 2024, and a 6 percent increase in January 2025. In 2022, the excise revenue was Rs 169.49 billion, while in 2024, it increased to Rs 223.25 billion.   

“With the upcoming 2026 Budget, an appropriate increase in alcohol taxation is anticipated, highlighting the urgent need for strong government action to reduce alcohol harm among all Sri Lankans, particularly children and youth, and to address the significant health, social, and economic impact of alcohol consumption.” ADIC says.