Sri Lanka Credits Tax Stamps with 60% Rise in Alcohol Excise Revenue

The Excise Department of Sri Lanka says excise revenue from alcoholic beverages has increased by more than 60% since the introduction of tax stamps on liquor bottles in 2022.

According to figures reported by the department, revenue rose from approximately LKR 140 billion (about $470 million) in 2021 to LKR 170 billion ($570 million) in 2022, the first year of implementation. Collections continued to grow to LKR 178 billion in 2023 and LKR 226 billion in 2024.

In the first nine months of 2025, excise revenue reached LKR 190 billion, exceeding the government’s target for the period by LKR 13.4 billion. The full-year target for 2025 was set at LKR 242 billion.

Former Excise Commissioner General Pemaratne said the results demonstrate the effectiveness of the tax stamp scheme in strengthening compliance and improving tax collection.

The scheme was launched on 3 January 2022 to ensure that excise duties are properly collected on all domestically produced and imported alcoholic beverages. It covers around 70 licensed liquor manufacturers and 18 importers. Depending on their production capabilities, companies use either secure self-adhesive labels or digitally printed security markings applied directly to bottles.