A new study by the Institute of Policy Studies of Sri Lanka (IPS) has revealed that cigarette smuggling is widespread in the country, undermining both public health policies and government revenue collection. The report stresses the urgent need for stronger enforcement, digital tracking systems, and public participation to curb the illegal trade.

The study, titled “Tobacco Smuggling in Sri Lanka – A Scoping Study”, notes that despite high excise taxes imposed to discourage tobacco use, smuggling allows cigarettes to enter the market at significantly lower prices. This makes them more accessible to young people and low-income groups, eroding the effectiveness of anti-tobacco measures.

“Smuggled cigarettes bypass health warnings and taxes, making them cheaper and more dangerous,” said the study’s lead author, IPS Research Fellow Dr. Erandathie Pathiraja.

Co-authors Nishamini Ihalagedara and Ruwan Samaraweera added that the illegal trade not only heightens healthcare costs but also robs the state of badly needed revenue. “This is a double blow—the health sector bears the rising burden while the Treasury loses billions in potential income,” they noted.

The IPS report challenges the common view that higher cigarette taxes directly fuel smuggling. Analysis of customs seizure data shows no consistent correlation between excise tax hikes and volumes of seized contraband. Instead, factors such as corruption, gaps in enforcement, and porous borders play a more decisive role.

Sri Lanka’s tobacco industry is heavily taxed, with excise duties accounting for the bulk of cigarette prices. While taxation is seen as a key tool to reduce consumption, the IPS study cautions that weak enforcement leaves loopholes that smugglers exploit. The result is a parallel market that both undermines official policy and exposes vulnerable groups to unregulated products.

To address the problem, IPS draws on international best practices. Recommendations include introducing digital excise tax stamps to track products, offering incentives for public reporting of smuggling activities, and tightening border control measures. Greater transparency and stronger institutional coordination are also highlighted as priorities.

The report warns that unless decisive action is taken, Sri Lanka risks losing both the health and revenue battle against illegal tobacco. “Technology, enforcement, and public engagement must go hand in hand to tackle smuggling effectively,” the authors stressed.

IPS argues that the country cannot afford to overlook the issue, as unchecked cigarette smuggling threatens to undo years of progress in reducing tobacco use while simultaneously weakening fiscal stability.

Sri Lanka’s official reserve assets recorded a slight increase of 0.3 per cent in August 2025, rising to USD 6.166 billion from USD 6.147 billion in July, according to data released by the Central Bank of Sri Lanka (CBSL).

The first round of Political Consultations between Sri Lanka and Italy concluded yesterday (Sep 4) in Colombo, co-chaired by Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra and Italy’s Deputy Minister for Foreign Affairs and International Cooperation Maria Tripodi.

Prior to the discussions, the two Deputy Ministers signed a Memorandum of Understanding on the Establishment of a Political Consultations Mechanism, providing a formal and structured framework for dialogue between the two countries, the Ministry of Foreign Affairs, Foreign Employment and Tourism said.

During the consultations, both sides identified areas for expanded cooperation in workforce mobility, trade, investment, tourism, defence, energy, food security, culture, and education. They also discussed the recent revival of the Italy–Sri Lanka Parliamentary Friendship Association and explored ways to enhance inter-parliamentary collaboration.

Particular emphasis was placed on expediting the conclusion of pending bilateral instruments, including the Memorandum of Understanding on Migration and Mobility Partnership—aimed at ensuring safe and sustainable migration—and the renewal of the Agreement on Mutual Recognition of Driving Licences.

Deputy Minister Tripodi also met with Prime Minister Dr. Harini Amarasuriya and Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath for further discussions. The Sri Lankan side expressed appreciation for Italy’s continued support to Sri Lankan migrant workers, while Tripodi in turn commended the contribution of Sri Lankan professionals in Italy, who now form the country’s 12th largest non-EU migrant labour force.

She assured that she would personally engage with Italian authorities at the highest level to expedite the renewal of key bilateral agreements.

This marks the first high-level Italian visit to Colombo since 2016. Italy is Sri Lanka’s fifth-largest export market and an important source of investment and tourism.

The Government has decided to launch a special project to conclude all pending investigations under the Office on Missing Persons (OMP) by the end of 2027, Cabinet Spokesman and Health and Mass Media Minister Dr. Nalinda Jayatissa announced yesterday.

The Cabinet of Ministers approved the initiative following a proposal presented by the Minister of Justice and National Integration. The project will see the appointment of 25 sub-committees comprising 75 qualified individuals, including retired judges, senior administrative officers, and lawyers.

Speaking at the weekly Cabinet press briefing, Minister Jayatissa noted that the OMP was established under Act No.14 of 2016, with its primary mandate being the investigation of cases of missing or disappeared persons and the issuance of reports to their families.

“Of the 16,966 complaints received by the OMP to date, 10,517 remain under investigation. To expedite the process, the Government will appoint 25 sub-committees consisting of 75 qualified individuals to ensure justice is delivered to the affected families,” the Minister said.

A new programme will be launched under the President’s Fund to provide financial assistance for the education of children in Sri Lanka whose parents employed overseas face hardships.

The initiative, introduced under the concept “Ensuring No Child is Left Behind in Education”, will be jointly implemented by the President’s Fund, the Ministry of Foreign Affairs, Foreign Employment and Tourism, and the Sri Lanka Bureau of Foreign Employment (SLBFE).

A discussion on expanding the services of the President’s Fund to better support Sri Lankans employed abroad, as well as those preparing for overseas employment, was held on Wednesday (Sep 3) at the Presidential Secretariat. The meeting was chaired by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath, alongside Senior Additional Secretary to the President and Secretary to the President’s Fund, Roshan Gamage.

The programme is designed to safeguard the education of children whose parents overseas have passed away, gone missing, been imprisoned, or affected by disasters. In addition, it will extend support to young Sri Lankans preparing for overseas employment by funding foreign language studies, providing allowances for trainers at language centres, and offering financial assistance to rural youth for skills development. It will also focus on building a skilled workforce for the tourism sector, with particular emphasis on rural areas.

The discussion was attended by Foreign Employment Division Additional Secretary Dr. M. M. S. S. B. Yalegama, SLBFE Chairman Kosala Wickramasinghe, Sri Lanka Institute of Tourism and Hotel Management Chairman Dheera Hettiarachchi, and senior officials from the President’s Fund and SLBFE.

The death toll from last night’s (Sep 4) bus crash near the 24th kilometre post on the Ella–Wellawaya main road has risen to 15, with more than 15 others injured and hospitalized.

According to hospital sources, over 15 patients have been admitted to the Badulla Teaching Hospital, several of them in critical condition.

The accident occurred when a bus carrying employees of the Tangalle Municipal Council, who were returning from an excursion in Ella, plunged about 500 metres down a precipice before coming to a halt. Around 30 passengers were reportedly on board at the time.

Rescue operations are continuing with the assistance of security forces and police, although poor visibility has hampered efforts. Several of the injured have already been rushed to hospital for treatment.

A few showers may occur in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy, Nuwara-Eliya and Jaffna districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara, Batticaloa and Mullaitivu districts after 2.00 p.m.

Mainly fair weather will prevail elsewhere of the island.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in North-central and North-western provinces and in Hambantota district.

The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion. The nearest places of Sri Lanka over which the sun is overhead today (05) are Nalluruwa, Balangoda, Rathmalawinna, Buduruwagala and Panama about 12.09 noon.