Priyanka Jayawardena Highlights the Importance of Effective Alcohol Taxation in Sri Lanka

5 September 2023

IPS Research Economist Priyanka Jayawardena discussed the significance of effective alcohol taxation in Sri Lanka at the Research Launch event organised by the Alcohol and Drug Information Center (ADIC) in collaboration with Movendi International.

Drawing from  IPS research, Priyanka Jayawardena highlighted effective alcohol taxation as a strategic policy choice, offering positive outcomes for both government revenue and public health. Based on the Household Income and Expenditure Survey (HIES) data, the study reveals that arrack and beer are the most commonly consumed alcoholic beverages in Sri Lanka. The findings highlighted alcohol taxation’s potential in curbing consumption while also generating significant revenue, especially since a substantial portion of alcohol consumers—about 50% for arrack and 65% for beer—fall within the wealthiest 40% of the population. The event emphasized the importance of leveraging evidence-based research to establish effective taxation rates that regularly adjust to stay ahead of inflation, ensuring the policy’s continued effectiveness in achieving its dual goals.

Download the presentation here.