News
Latest tax hike yields Rs. 7 bn profit windfall for tobacco companies
Deaths caused by alcohol and smoking annually in SL number 15,000 and 20,000 respectively
By Sujeewa Thathsara
The recent increase in cigarette taxes will generate an additional profit of approximately Rs. 7 billion for cigarette companies, according to the Alcohol & Drug Information Centre (ADIC).
While the tax on the most popular cigarette category rose by Rs. 4.51 per stick, the retail price has surged by Rs. 10 per cigarette, enabling companies to pocket significant profits.
ADIC has attributed the profit windfall to the lack of a robust system for efficient tax collection. It has noted that regardless of which government is in power, tobacco and alcohol companies have consistently managed to secure substantial financial gains.
AIDIC has further pointed out that alcohol consumption is responsible for around 15,000 premature deaths annually in Sri Lanka, while smoking accounts for nearly 20,000 fatalities each year.
In 2023, a 20% increase in alcohol taxes led to a reduction in alcohol consumption by 8.3 million litres while boosting government excise revenue from alcohol by Rs. 11.6 billion. Similarly, despite a decline in cigarette sales, excise revenue therefrom rose by Rs. 7.7 billion.
Sampath de Seram, Executive Director of ADIC, has said those figures underscore the impact of taxation on consumption patterns and government revenue.
News
Food Security is vital to ensuring a Nation’s Sovereignty and National Security – Prime Minister
Prime Minister Dr. Harini Amarasuriya stated that, in the face of the turbulent global environment prevailing today, agriculture is confronting significant challenges, and that food security is a crucial factor affecting a country’s stability, sovereignty, and national security.
The Prime Minister made these remarks on 28 of April at the Waters Edge, Battaramulla, while addressing the National Youth Agripreneur Showvase and B2B connect Conference organised under the Smallholder Agribusiness Partnership Programme (SAPP), funded jointly by the International Fund for Agricultural Development (IFAD) and the Government of Sri Lanka. The programme aims to empower rural youth to engage in agribusiness ventures.
Addressing the gathering, the Prime Minister further stated:
“I commend the organisers for successfully conducting this event despite the various challenges faced by the country.
You are playing an important role in both the agricultural sector and the national economy. I am happy to witness talented agri-entrepreneurs such as yourselves.
Food security, founded on agriculture, directly impacts a nation’s national security. Concepts such as ’Grow and Sell’ contribute significantly to strengthening the production economy.
During the COVID crisis, as well as amidst the current conflicts in the Middle East, it has become evident that if countries lack food security, their economies become vulnerable. Even a minor decision taken by leaders can disrupt supply chains.
Climate change also poses serious challenges to agriculture. When climatic and environmental conditions become difficult to predict, agriculture itself is threatened. In such a context, your contribution as agri-entrepreneurs goes beyond earning an income. It is also a direct contribution to the nation’s food security and, consequently, to national security. Your talents and innovations are important not only to yourselves, but to the people of the country as a whole”.
The Prime Minister also expressed gratitude for the support extended by institutions such as IFAD and SAPP, and conveyed best wishes to the country’s creative entrepreneurial youth.
The occasion was attended by the Minister of Agriculture, Livestock, Land and Irrigation K.D. Lalkantha; Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe; Secretary to the Ministry of Agriculture, Livestock, Land and Irrigation D.P. Wickramasinghe; Additional Secretary of the Ministry Lathisha Priyanthi; Director of SAPP Sunimal Chandrasiri; and several other distinguished guests.

(Prime Minister’s Media Division)
News
Explanation sought from AKD on ‘Russian energy supplies’
The National Patriotic Front (NPF) has said the NPP government owes the public an explanation regarding the status of negotiations with Russia to secure energy supplies.
NPF General Secretary Dr. Wasantha Bandara said that Sri Lanka was in such a desperate situation, the current dispensation couldn’t, under any circumstances, miss the opportunity to reach consensus with Russia in this regard.
Dr. Bandara was responding to The Island query in the wake of the NPF, in a letter, dated 27 April, warning President Anura Kumara Dissanayake of the catastrophic consequences for the country if it failed to obtain energy supplies on affordable terms.
Alleging that various interested parties, within the government, and the Western diplomatic community, hindered the successful conclusion of an agreement/agreements between Sri Lanka and Russia, Dr. Bandara pointed out that those in authority seemed to have conveniently forgotten that Sri Lanka received two Russian delegations. In late March and early April 2026, Russian Deputy Energy Minister Roman Marshavin and Deputy Foreign Minister Andrey Rudenko, visited Colombo where the focus was on long-term fuel supplies, investment, and tourism.
Dr. Bandara said that Anura Karunatilleke, who succeeded Energy Minister Kumara Jayakody, embroiled in the coal scam, was yet to meet the Russian Ambassador in Colombo Levan Dzhagaryan, who wants to explore ways and means of expediting the process. Instead,

British High Commissioner Andrew Patrick meets Energy Minister
Karunatilleke and Deputy Civil Aviation Minister Janaka Ruwan Kodithuwakku
Karunatilleke and Deputy Civil Aviation Minister Janaka Ruwan Kodithuwakku recently met British High Commissioner Andrew Patrick, Dr Bandara said. Referring to BHC post that they discussed how Sri Lanka could maximise its ports and airports, including through existing and new UK partnerships, alongside UK support for green energy, particularly offshore wind, Dr. Bandara emphasised that the UK and EU struggling to meet their own energy demands couldn’t help Sri Lanka.
In the NPF letter to President Dissanayake, Dr. Bandara alleged that Sri Lanka could secure a barrel of Russian crude for USD 150 to 160 whereas procurement through India cost a lot more. The NPF emphasised the responsibility on the part of the NPP government to maintain close relations with China, Russia and Iran, Sri Lanka’s long-time friends.
The NPF has urged President Dissanayake to intervene without further delay to ensure national interest in this matter is given utmost importance.
Dr. Bandara pointed out that those in charge of coal procurement told a parliamentary committee how the trouble started after Sri Lanka moved from Russian coal to South African products through disgraced Indian firm Trident Chemphar Ltd. Dr. Bandara asserted that political parties, represented in Parliament, should take up this matter vigorously and shouldn’t be distracted by vile NPP strategies.
By Shamindra Ferdinando
News
US reiterates its commitment to enhancing relations with Northern Sri Lanka
The US Embassy in Sri Lanka, on April 26, celebrated the 15th anniversary of American Corner Jaffna (ACJ), highlighting its longstanding role in connecting communities in Northern Sri Lanka with the United States through programmes focused on education, innovation, and American values. The Embassy also inaugurated the new “Freedom 250 Pavilion,” part of the global Freedom 250 initiative commemorating 250 years of American independence, the Embassy said in a press release issued yesterday (27)
Speaking at the event, US Embassy Public Affairs Officer Menaka Nayyar said: “American Corner Jaffna reflects the United States’ commitment to sharing American values, culture, and ideas with the people of Northern Sri Lanka. On July 4, 2026, the United States will celebrate 250 years of independence—a milestone that highlights our founding ideals and partnerships around the world, including here in Jaffna. Through the new Freedom 250 Pavilion and our programs, we invite the community to engage with the United States and learn more about our history, society, and innovation.”
In 2025 alone, ACJ hosted nearly 400 programmes, reaching more than 10,000 participants. Located at No. 23, Athiyady Road, Nallur, Jaffna, American Corner Jaffna provides free access to resources on the United States, English language learning, educational advising, and skills-based programming.
Established in 2011, in partnership with the Jaffna Social Action Centre, American Corner Jaffna was created as a platform for direct engagement with local communities—offering opportunities to learn about the United States while building skills in critical thinking, leadership, and innovation.
Launched in the post-conflict period, the Corner has played a key role in connecting emerging leaders in Northern Sri Lanka with ideas, resources, and opportunities rooted in American experience and perspectives. The Freedom 250 Pavilion expands ACJ’s capacity to host interactive programmes and community events, reinforcing the Corner’s role as a dynamic space for collaboration, dialogue, and learning.
Individuals can take part in free programmes by visiting American Corner Jaffna in person, contacting the Corner at 021 222 0665 or via email at info@americancornerjaffna.com, and following American Corner Jaffna on Facebook (facebook.com/amcornerjaffna) for the latest updates on events, registration, and membership opportunities.
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