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Sri Lanka’s tobacco trap: The $500 million fiscal sinkhole

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From left: Suely Castro, QLS Director (Brazil), Dr. Sree T. Sucharitha (India), Professor Marewa Glover (New Zealand), Professor Fredrik Nystrom (Sweden), Rohan Sequeira, Senior Consultant Cardio-Endocrine Physician (India) pose for a photograph at the conclusion of the media roundtable

While many nations struggle with high smoking rates, Sweden has carved a unique and successful path, poised to become Europe’s first “smoke-free” country with just 5.3% of adults smoking. The question at the heart of the recent “Quit Like Sweden” roundtable in Colombo was not whether this success can be replicated, but how South Asia can adapt this model to avert a looming public health crisis.

The Swedish achievement is no accident. It is the result of a pragmatic policy that combines traditional anti-smoking measures while ensuring that safer alternatives to cigarettes are accessible and affordable. This approach, known as Tobacco Harm Reduction (THR), was the central theme at the roundtable.

For Sri Lanka, the stakes are critically high. Professor Rohan Sequeira, a Senior Consultant Cardio-Endocrine Physician, presented a stark reality. “We in South Asia are in the epicenter of tobacco-related oral cancer and heart diseases worldwide,” he stated.

Professor Sequeira then delivered an economic argument that demands policymakers’ attention. In 2023, the government collected approximately USD 500 million in tobacco taxes. In that same year, it spent an estimated USD 490 million treating tobacco-related diseases. “What you get in taxes, you spend back in healthcare. It doesn’t make sense,” he said, noting that this one-to-one ratio highlights a fiscal sinkhole that drains resources from other essential social priorities.

The solution, experts argued, lies in embracing harm reduction. Evidence shows that switching to safer nicotine products can reduce harm by up to 95% compared to combustible cigarettes. A recent “Lives Saved” report for Sri Lanka projects that integrating THR policies could save 85,000 lives by 2060 and potentially save the healthcare system billions of dollars over the coming decades.

However, a significant regulatory barrier exists. Unlike Sweden, where products like snus and nicotine pouches are widely available, Sri Lanka prohibits heated tobacco products and maintains a confusing regulatory landscape for safer alternatives. This leaves heavy smokers with no legal, less harmful options – a policy that Professor Fredrik Nystrom of Linköping University warned can be counterproductive. “Smokers aren’t criminals, and therefore, stigmatising them excessively can actually push the behavior underground,” he noted.

The roundtable concluded that for Sri Lanka, a practical path forward must include risk-proportionate regulation, where safer alternatives are made more accessible than deadly cigarettes, coupled with professional cessation support and public communication to guide consumers, particularly those from lower economic strata who are most affected.

“The Swedish example proves that a smoke-free future is achievable. For Sri Lanka, adopting a similar, pragmatic approach is not just a public health opportunity, but an economic imperative. It’s up to the authorities of the government to engage with these experts as they have submitted a report to the government in July 2024 on THR”, a tobacco control researcher in the audience shared with The Island.

By Sanath Nanayakkare ✍️



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World Bank puts USD 110m into climate-resilient road rebuilding

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A Cyclone Ditwah-damaged area in Sri Lanka.

By Ifham Nizam

The World Bank has approved USD 110 million in additional financing to rebuild around 600 kilometres of roads damaged by Cyclone Ditwah, with the investment aimed not merely at restoring connectivity but at making critical transport infrastructure more resilient to future climate shocks.

The financing comes against a much larger recovery requirement for the transport sector, estimated at USD 1.31 billion, highlighting the scale of the infrastructure challenge following one of the most destructive weather disasters to hit the country in recent years.

The World Bank said the additional financing, provided through the International Development Association (IDA) Crisis Response Window, would support road reconstruction incorporating improved drainage, landslide protection and upgraded engineering standards.

‘Cyclone Ditwah has had a devastating impact on connectivity across Sri Lanka, but rebuilding also gives us an opportunity to build back stronger, said Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and Maldives.

The World Bank said the programme would go beyond repairing damaged roads, helping reconnect farmers with markets, communities with essential services and households with economic opportunities.

The additional financing will extend the Inclusive Connectivity and Development Project (ICDP) by three years, taking total World Bank transport investment under the operation to USD 610 million.

The World Bank’s December 2025 GRADE assessment estimated Cyclone Ditwah had caused USD 4.1 billion in direct physical damage, equivalent to around four percent of GDP. Infrastructure accounted for approximately USD 1.735 billion, or 42% of the total, with roads, bridges, railways and water systems among the heavily affected assets.

The Bank has stressed that the USD 4.1 billion estimate measures direct physical damage and does not include income or production losses or the full cost of recovery and reconstruction.

The transport sector alone suffered extensive disruption, making the rebuilding of road networks a critical component of the broader economic recovery.

The latest USD 110 million package is expected to directly benefit more than 830,000 people, while nearly two million people across eight districts are expected to benefit from improved connectivity.

The programme is also expected to support employment during reconstruction and improve market access for approximately 22,000 tea, vegetable and paddy farmers.

The World Bank’s intervention therefore combines immediate disaster recovery with a longer-term infrastructure objective: ensuring that money spent on reconstruction does not simply restore roads to their pre-disaster condition but reduces their vulnerability to the next extreme-weather event.

That approach is becoming increasingly important as climate-related disasters place additional pressure on already constrained public finances.

Rebuilding the same infrastructure repeatedly after floods, landslides and other disasters carries a significant economic cost, making resilience an increasingly important part of infrastructure investment decisions.

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SLIC Life offers Rs.1million free life cover to parents of children born on World Children’s Day 2026

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Senior Management of SLIC Life and officials of Castle Street Hospital for Women symbolically handing over a Free Life Cover of Rs. 1 million to a parent whose child was born on 1st of October 2026

In celebration of World Children’s Day 2026, Sri Lanka Insurance Life (SLIC Life) has once again extended a Rs. 1 million free life insurance cover to the parents of every child born on 1 October 2026, across Sri Lanka. Now in its fifth consecutive year, the initiative was implemented island-wide, covering hospitals across the country and enabling parents of newborns to benefit from this special offering.

Beyond providing financial protection, the initiative seeks to highlight the importance of planning for a family’s financial security from the very beginning of a child’s life.

“The birth of a child marks the beginning of a new journey filled with hopes, dreams and aspirations. At SLIC Life, we believe that protection should begin from the very start of that journey. Through this initiative, we aim to create greater awareness of the importance of planning ahead and the role life insurance can play in safeguarding families against life’s uncertainties. As we continue this initiative for the fifth consecutive year, we remain committed to extending meaningful protection to Sri Lankan families and contributing towards a more secure future for the next generation,” said Dr. Sameera Dharmasena, Chief Executive Officer of SLIC Life.

Launched in 2022 as part of SLIC Life’s Corporate Social Responsibility (CSR) programme, the World Children’s Day initiative was introduced with the aim of supporting parents and strengthening financial security for families at an important stage in their lives. Over the years, the initiative has become a significant part of SLIC Life’s annual CSR calendar, reflecting the company’s broader commitment to children, families and communities.

SLIC Life’s commitment to children and education extends across several long standing CSR initiatives. The ‘Pasal Piriyatha Surakimu’ programme, launched in 2007, has benefited over 3,365 underprivileged schools through initiatives including classroom refurbishments, water facilities, libraries and learning resources. The 2026 edition of the programme is scheduled to be carried out in November, continuing SLIC Life’s efforts to enhance learning environments for children across the country. Complementing this, the ‘Suba Pathum Scholarship Programme’, which has been conducted since 2014, has now awarded 2,425 scholarships valued at Rs. 265 million to children of policyholders who demonstrate excellence in national examinations. The programme reflects SLIC Life’s continued focus on supporting educational aspirations and creating opportunities for the next generation.

Children remain at the heart of SLIC Life’s commitment to building a more secure future. Through the annual World Children’s Day initiative and its wider CSR programmes, SLIC Life continues to demonstrate that the value of insurance extends beyond financial protection, contributing to stronger and more resilient families and communities.

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HelpAge thanks donors for helping in carrying out free cataract surgery program

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A surgery in progress under the aegis Helpage.

At a recent seminar HelpAge Sri Lanka (HASL) thanked local and foreign donors for strengthening the on-going free cataract surgeries program conducted by HelpAge Eye Hospital, Wellawatta for less- privileged elders over 55 years.

According to HelpAge Eye Hospital statistics the free cataract surgery programme was commenced in 2002 and over 55,000 surgeries have so far been performed for elderly citizens.

Head of HelpAge Eye Hospital Mahanama Wijesinghe said needy persons over 55 years of age could contact the hospital on telephone numbers 0112555759 and 0112589450 for free cataract surgeries.

‘Steps have been taken to conduct surgeries within a short duration of 30 days after attending the Eye Hospital clinic, he said.

Wijesinghe thanked all donors for their donations towards helping underprivileged citizens of the country.

HelpAge, Executive Director Dr. Harsha Bandara said HelpAge also conducts free medical and eye camps for needy elders and thanked donors for their donations towards this meritorious cause.

He requested philanthropists and donors to make their contributions for the sake of the needy.

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