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Dry Avurudu for alcohol industry

18 Apr 2021

The country’s alcohol industry states that alcohol sales during the festive season failed to record an upward trend to match its pre-pandemic performance as sales remained somewhat dry this year. Industry stakeholders who wished to remain unnamed told The Sunday Morning Business that even though people are out there on the streets, their purchasing power has diminished, contrary to the same period in 2019.  In 2020, Sri Lanka’s liquor industry faced several restrictions imposed during the pandemic and the industry lost its annual Sinhala and Tamil New Year and Easter sales. The collective sales during this period usually bring in a significant amount in revenue for the industry, similar to that of Christmas; the industry estimated last year’s loss to be in the billions. Official data shows that last year this led to a loss in revenue for the local Government, since the liquor industry is a top contributor to the tax revenue. Last year concluded recording declining alcohol purchases due to the absence of tourists and restrictions imposed on the alcohol industry. According to the industry, the period from October to February annually witnesses a higher number of tourists coming into Sri Lanka than during the rest of the months. This period covers Christmas and New Year, and tourists travel to Sri Lanka to celebrate them and consume a considerable amount of alcohol. According to a study done by LOLC Securities, Sri Lanka has recorded high per capita alcohol consumption when compared to the South Asian region. The significant loss in seasonal liquor sales is expected to reduce the Government’s revenue considerably.  The World Health Organisation (WHO) advised governments to restrict access to alcohol as the substance increases problems and places a largely avoidable burden on the health system and other government services during the Covid -19 pandemic, last year.  Sri Lanka banned alcohol sales along with imposing curfew measures to curb the spread of Covid-19 from late March. On Sunday, 19 April last year, the government decided to lift the alcohol ban along with relaxing the curfew measures. Meanwhile, the Alcohol and Drug Information Centre (ADIC), a member of Movendi International, conducted a study claiming that consumption of alcohol had been reduced by 80% during the Covid pandemic. Thereby, expressing criticism of and opposition against this measure as it will increase availability of alcohol during the pandemic and likely harm people and burden people and communities.


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