Govt. revenue concerns spike amid drop in liquor production 

Finance State Minister 

Ranjith Siyambalapitiya 

• State Minister of Finance Ranjith Siyambalapitiya reveals 19% drop in alcohol production in 2023
• Asserts significant decrease of 15 m units observed in production of popular 180 ml alcohol bottles
• Says production of 750 ml, 375 ml experienced notable declines compared to 2022 figures
• Taxes contribute 75% of the total price of a bottle
• Urges measures to curb illegal alcohol production to recover lost tax revenue
• Reveals 214 new licences granted in 2023, with 147 allocated for specific types catering mainly to tourism sector
• Cumulative liquor licences issued by Excise Dept. amounts to 5,730
• Emphasises Govt. stance against alcohol promotion with increased liquor licence fee

The Government yesterday expressed concern over significant decline in alcohol production and its potential impact on State revenue.

Addressing the House, State Minister of Finance Ranjith Siyambalapitiya disclosed that alcohol production has seen a significant drop by 19% in 2023. 

Highlighting the statistics, he informed the Parliament that the production of 180 ml alcohol bottles, which typically see high sales, experienced a decrease of approximately 15 million units.

Comparing the figures from 2022, the State Minister revealed that production of 750 ml bottles dropped from 57.7 million to 39.5 million in 2023, whilst the production of 375 ml bottles decreased from 42.7 million to 36.6 million in 2023.  Additionally, the production of 180 ml bottles declined from 105.8 million in 2022 to 90.5 million in 2023.Noting that taxes account for 75% of the total price of a bottle, he underscored the substantial contribution of alcohol taxation in Government revenue generation.

Responding to concerns about the rise in alcohol consumption, the State Minister pointed out that illegal alcohol remains prevalent in areas where legal options are lacking. 

He stressed the need to curb illegal alcohol production to recover lost tax revenue. 

Siyambalapitiya stated that 214 new licenses were granted in 2023 alone, with 147 of them being F.L 7, 8 and F.L 11 types, primarily catering to the tourism industry. 

He also informed the Parliament that the Excise Department has issued a total of 5,730 liquor licenses.

The State Minister reiterated the Government’s stance against promoting alcohol use and highlighted recent increases in liquor licence fees.