News
Excise revenue jumps 60% as revenue stickers curb liquor tax fraud
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
The Cabinet of Ministers approved the resolution furnished by the Minister of Agriculture, Livestock, Lands and Irrigation to appoint Ms. P. M. Jayadeera (Engineer) in the Special Grade of Sri Lanka Engineering Service serving at present as the Additional Secretary (Water Resources Development) of the Ministry of Agriculture, Livestock, Lands and Irrigation to the post of Director General which will be vacant from 06.10.2026.
Approval has been granted at the meeting of the Cabinet of Ministers held on 08.06.2026 to prepare a draft bill for restructuring Sri Lanka Cricket.
Accordingly, the Legal Draftsman has formulated Sri Lanka draft bill providing legal provisions for the administration of Sri
Lanka Cricket, control, regulation, promotion, establishment of Sri Lanka Cricket for the development and administration, through the concepts of better governance, integrity, transparency, accountability, inclusiveness and providing equal opportunities for the betterment of the cricket sport, establishment of Sri Lanka Cricket for securing the wellbeing of all participants and securing cricket from corruption and other mal practices.
Clearance of the Attorney General has been received for the said draft bill. Approval of the Cabinet of Ministers has been received for the resolution furnished by the Minister of
Youth Affairs and Sports to publish the said draft bill in the government gazette notification and thereby forward the same to the Parliament for its concurrence.
The Sri Lanka Land Development Corporation performs vitally important functions such as minimizing the risk of inundation in urban and lowland areas, maintaining drainage systems efficiently, carrying out urgent operations during inundation events, and maintaining canals.
The need to strengthen the capacity of the corporation’s internal
operations has been identified by the corporation to perform the aforementioned functions efficiently and expeditiously.
The corporation has planned to purchase small -scale machinery that can be used to clean small canals, which significantly contribute to urban inundation.
The General Treasury has agreed to grant 625 million rupees as an equity contribution for purchasing the relevant machinery.
Accordingly, the Cabinet of Ministers has approved the resolution submitted by the Minister of Transport, Highways, and Urban Development to purchase the relevant machinery by the Sri Lanka Land Development Corporation, following formal procurement procedures at an estimated cost of Rs. 1,233
million, utilizing the aforementioned amount granted by the General Treasury and the funds of the Sri Lanka Land Development Corporation.
Ms. P. M. Jayadeera (Engineer) appointed Director General of Irrigation
Sri Lanka Cricket Draft Bill to be gazetted
Cabinet approves purchase of machinery for the Sri Lanka Land Development Corporation
Cabinet approval for Project to Build Secure, Skilled, and Empowered Community for families resettled at the at Kalinga Mawatha, housing scheme
Appointment of Cabinet Sub-Committee for the Organization of 79th Independence Day Commemoration
Establishment of New Management Framework for the Dr. Nevil Fernando Hospital
‘Dates have the highest sugar content to fight Coronavirus’
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