Liquor companies reject Excise Department’s request to lower prices

• Health officials criticize Excise Department for promoting alcohol

By Sheain Fernandopulle  

The Excise Department’s recent request for liquor companies to reduce prices has been rejected by the companies, drawing criticism from health professionals who view the move as promoting alcohol consumption. 

Excise Department Spokesman Commissioner Channa Weerakkody told the Daily Mirror that the request was made owing to a decline in sales.   
“However, the liquor companies have not agreed to the request,” Weerakkody added.

The move has faced significant backlash, with medical professionals criticizing the Excise Department for encouraging alcohol consumption.   

Speaking on the move, Dr. Sampath De Seram, Executive Director of the Alcohol & Drug Information Center (ADIC) in Sri Lanka, stated “The role of the Excise Commissioner should focus on recovering the arrears owed to the government, not on increasing alcohol consumption by asking companies 
to lower prices.”  

Further, Dr. De Seram revealed that the Excise department has not collected billions of rupees in arrears from alcohol companies.  
“As of June 30, 2024, the Excise Department is reported to have lost 1.8 billion rupees in outstanding excise duties due to inefficiencies and favourable taxation for alcohol companies,’ according to Dr De Seram.   

“Scientific evidence indicates that alcohol costs the country more than it generates in revenue. A 2023 UNDP survey found that alcohol-related health and economic losses in Sri Lanka total 237 billion rupees, while liquor tax revenue amounts to only 165.2 billion rupees,” Dr. De Seram added.  

In a related development, the Parliamentary Committee on Ways and Means recently criticized the Commissioner General of Excise for disregarding committee recommendations, calling it a disrespectful act toward Parliament.