Sri Lanka’s excise revenue has surged by more than 60% over the past three years following the introduction of a revenue sticker system for liquor products, which authorities say has helped curb widespread tax evasion and counterfeit operations without costing the government a single rupee.

The Excise Department’s revenue increased from Rs. 170 billion in 2022, when the programme was launched, to Rs. 226 billion in 2024, with further growth recorded in 2025, according to a senior department official.

The revenue stickers programme, introduced on January 3, 2022, initially faced strong resistance from sections of the liquor industry. The official said many manufacturers had failed to comply with the requirement to affix revenue stickers to bottles, resulting in significant revenue losses to the state.

“Nearly 50% of the excise revenue due to the government was being lost,” the official said, adding that the department responded through intensified inspections and enforcement operations.

The official claimed that some industry players had opposed the system because it disrupted practices involving counterfeit stickers, unrecorded production and tax evasion. In one series of raids conducted in August 2023, counterfeit stickers were detected on liquor bottles at more than 6,000 locations, while around 100,000 bottles bearing fake stickers were seized within a week in February 2023.

Under the revenue stickers system, the financial burden is borne entirely by liquor manufacturers. The department said suppliers provide the stamps at a cost of about US$5.99 per 1,000 stickers, rising to approximately US$7.99 after port duties and clearing charges. The cost to manufacturers is around Rs. 1.21 per stamp.

The official said the programme produced immediate results, with excise revenue increasing by 17.7% in the first quarter after implementation, while liquor production rose by 9%. Toddy production recorded a sharp 200% increase as previously unreported production entered the formal taxable supply chain.

By May 31, 2025, the department had achieved 104% of its expected revenue target, collecting Rs. 98 billion during the period, the official said.

The Excise Department said the system conforms to international standards, including ISO 22382 guidelines for revenue sticker systems, and similar mechanisms are used in countries such as Nepal and Argentina.

by Chaminda Silva

Sri Lanka Insurance Life (SLIC Life) has declared a record annual bonus of Rs. 14.68 billion to its policyholders for the 2025 financial year, the highest life insurance bonus announced by any insurer in Sri Lanka.

The company said the latest declaration raises the cumulative bonuses paid to policyholders since 2006 to Rs. 131.28 billion, extending its record of announcing the industry’s highest annual bonus.

SLIC Life said it maintained its financial strength during 2025, with total assets increasing to Rs. 275 billion and its Life Fund reaching Rs. 247 billion, the largest in the local life insurance industry. The insurer also settled an average of more than Rs. 1.35 billion a month in maturity payments and claims, amounting to approximately Rs. 16.2 billion for the year.

The company reported a Profit Before Tax of Rs. 4.3 billion for 2025, while Gross Written Premium (GWP) rose 24% year-on-year to Rs. 32.6 billion. New Business Premium Income increased by 42% to Rs. 7.56 billion.

SLIC Life said it continued to invest in digital services and customer experience while expanding its Life Loyalty Rewards programme.

Nusith Kumaratunga, Chairman of SLIC (Left) and Nalin Subasinghe, CEO of SLIC Life (Right) addressing the gathering

The insurer also highlighted its corporate social responsibility initiatives, including the ‘Pasal Piriyatha Surakimu’ programme, which has supported more than 3,365 underprivileged schools since 2007, and the ‘Suba Pathum Scholarship Programme’, under which more than 2,200 scholarships worth over Rs. 240 million have been awarded since 2014.

The 6th Pakistan-Sri Lanka Armed Forces Defence Dialogue concluded successfully at Navy Headquarters in the Defence Headquarters Complex, Sri Jayewardenepura, Kotte, with both countries reaffirming their commitment to strengthening defence ties.

The annual bilateral dialogue was co-chaired by Sri Lanka’s Defence Secretary, retired Air Vice Marshal Sampath Thuyacontha, and Secretary of Pakistan’s Ministry of Defence, retired Lieutenant General Muhammad Ali. Senior officials from the defence ministries and armed forces of both countries participated in the discussions.

The talks focused on enhancing existing defence cooperation and exploring new areas of collaboration, including military-to-military engagement, training and professional military education, maritime security, counterterrorism, capacity building and regional security.

Addressing the opening session, retired AVM Thuyacontha expressed appreciation for Pakistan’s continued support in improving the professional capabilities of the Sri Lanka Armed Forces and stressed the importance of maintaining close defence relations between the two countries.

He said the dialogue provided an important platform to review ongoing cooperation and identify new opportunities for partnership, while conveying Sri Lanka’s gratitude to the Pakistani delegation on behalf of the President and the Government.

Retired Lt. Gen. Muhammad Ali thanked Sri Lanka for the hospitality extended to the Pakistani delegation and reaffirmed Pakistan’s commitment to further strengthening the longstanding defence partnership between the two nations.

Pakistan High Commissioner retired Major General Nayyar Naseer, Additional Secretary (Defence), service commanders, senior Defence Ministry officials and senior tri-service officers also attended the event.