SL becomes most expensive country to buy fags – RIU survey reveals

Sri Lanka has become a paradise to illicit tobacco dealers because of the increasing price of permitted cigarettes and loopholes in border control, a latest survey by the Research Intelligence Unit (RIU) revealed.   

Based on Purchasing Power Parity, the World Health Organization (WHO) has named Sri Lanka as the most expensive country in the world to purchase cigarettes in 2020 and a prime target for global illicit tobacco trade, the survey points out.   

The RIU released their latest report on the economics of tobacco taxation in January 2022. This report contains preliminary results of a primary survey of tobacco consumers and retailers to understand the nature of the overall tobacco market with special attention on the illegal tobacco trade. The RIU has conducted the survey with the purpose of understanding the impact of illegal tobacco trade on the Treasury and the local economy.   

The report based on primary research findings estimates that 21% of cigarettes consumed in Sri Lanka in 2021 were illegal. The percentage of consumption of cigarettes has gradually increased from 12% in 2012 to 21% in 2021. Accordingly, 21% of market share is a fiscal revenue loss of approximately 27 billion rupees for 2021. (K. K. K.)