March 09, Colombo (LNW): A recent meeting of the Committee on Public Finance (CoPF), chaired by MP Dr. Harsha de Silva, revealed a significant rise in the production of alcohol in the country, which has increased by 22 per cent over the past two months.
Alongside this, the revenue generated from the liquor industry has grown by 23 per cent, indicating a notable expansion in both production and consumption.
Officials from the Ministry of Finance, presenting their findings to the committee, noted that the government is working on introducing a new category of alcohol.
The aim of this initiative is to curb the consumption of illicit liquor, which remains a persistent issue in many parts of the country.
As part of the discussions, the committee also reviewed and approved a proposal to raise the excise duty on alcoholic beverages, under Excise Notification No. 01/2025, as per Section 22 of the Excise Ordinance (Chapter 52).
The move is expected to generate additional revenue for the state, but it has raised concerns among several members of Parliament.
Some MPs expressed reservations that the increase in excise duties might inadvertently push more individuals towards the illegal production and consumption of alcohol.
They highlighted the risks of driving the market for illicit liquor underground, where it could be sold without regulation and at potentially dangerous levels of alcohol content.
In response to these concerns, Ministry of Finance officials reassured the committee that steps are being taken to combat the production and distribution of illicit liquor.
They noted that raids targeting illegal operations are being carried out regularly and systematically to reduce the prevalence of unregulated alcohol.
