Importance of Effective Alcohol Taxation in Sri Lanka

This Policy Brief was written by the Institute of Policy Studies of Sri Lanka. The policy brief discusses alcohol consumption, alcohol-related harms, and the importance of effective alcohol tax policies. The researchers find that 9% of households consume alcohol, and 73% of consumers choose to drink arrack. Households that consume alcohol spend 8% of their overall budgets on alcohol, with poorer households spending an even larger share. These findings highlight the potential benefits of increasing alcohol taxes to reduce consumption as well as raise additional revenues. The policy brief concludes with policy recommendations to raise excise taxes on alcohol, as well as strengthen policies to reduce the size of the illicit alcohol market.