Fiscal policy scenarios have shown that taxation and pricing policies are cost-effective ways to reduce the negative health and social impacts caused by alcohol consumption while generating revenue. In Sri Lanka, taxes on alcoholic beverages have been increased in successive budgets to achieve these goals. To make informed policy decisions, a better understanding of alcohol tax is necessary. The RESET Alcohol Initiative aims to carry out economic research to support alcohol tax reforms in the country.
The research project consists of four main components, including developing an evidence matrix, analysing price and income sensitivity, conducting tax simulation analysis, and examining the political economy. The expected outcome of this research is to design and implement effective fiscal policies that reduce alcohol consumption in Sri Lanka.
