From left: Priyanka Jayawardena, Dr. Erandathie Pathiraja and Nimesha Dissanayaka 

• A new IPS study reveals asubstantial price sensitivity of beedis and smokeless tobacco products in Sri Lanka
• Key empirical findings from this research challenge the misconceptions that beedis are direct substitutes for cigarettesand that raising cigarette prices prompts increased beedi consumption.
• Effective taxation policies targeting both cigarettes and beedis can serve as robust measures to reduce smoking.

Despite a notable reduction in formal cigarette consumption, the use of informal cigarettes such as beedi cigars remains a significant concern in Sri Lanka.Continued beedi consumption, especially among the poor, demands sustained efforts and innovative approaches to control tobacco use. 

A new publication by the Institute of Policy Studies of Sri Lanka (IPS) titled “Strategies to Curb Beedi and Smokeless Tobacco Consumption in Sri Lanka,” by IPS researchers Priyanka Jayawardena, Dr Erandathie Pathiraja, and Nimesha Dissanayaka, explores the complex landscape of tobacco consumption in Sri Lanka and offers strategies to strengthen tobacco control efforts in the country.

Since signing the WHO Framework Convention for Tobacco Control (WHO-FCTC) treaty in 2003, Sri Lanka has introduced several tobacco control policies related to the sale, taxation, pricing, and packaging of tobacco products. Due to its informal nature, the beedi industry is less stringently regulated in Sri Lanka. Tobacco consumption in any form is harmful to health, so it is imperative to control all forms of tobacco through comprehensive policy measures.

The study findings highlight the following:

Price Sensitivity and Consumption Patterns

The study reveals significant price sensitivity for beedis and smokeless tobacco products. A 10 percent price increase in beedis would reduce consumption by 5.6 percent, while a similar increase for betel quid would result in a 10 percent  consumption decrease. Higher elasticity values for both cigarettes and beedis suggest that price increases can effectively control smoking initiation. Strategic pricing interventions can thus be powerful tools in discouraging smoking and achieving broader public health objectives.

Misconceptions about substitution

The study challenges the misconception that beedis are direct substitutes for cigarettes. Cross-price elasticity analysis reveals that cigarettes and beedis are not close substitutes, indicating that raising cigarette prices is unlikely to prompt increased beedi consumption.

Socioeconomic impacts

The study highlights that the high prevalence of beedi use among socioeconomically disadvantaged individuals could be linked to factors such as affordability and availability.

Furthermore, it addresses the socioeconomic impacts of reduced beedi demand on industry stakeholders, including vulnerable groups involved in the beedi value chain, particularly, women and children. 
It emphasises the importance of devising appropriate measures to mitigate adverse effects on these stakeholders and communities resulting from tobacco control policy changes. 

Recommendations

The findings of this study underscore the importance of effective non-cigarette tobacco product (NCTP) control strategies in Sri Lanka. However, the continued prevalence of informal cigarettes emphasises the necessity for comprehensive tobacco control initiatives that extend beyond solely addressing formal cigarettes. This includes implementing measures such as tobacco taxes, regulations, and public health campaigns, particularly targeting vulnerable communities. Developing effective NCTP control strategiesfor these communities is imperative to reduce beedi consumption.