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Illicit alcohol in Sri Lanka: Introducing a low-cost beverage isn’t the answer

Illicit alcohol in Sri Lanka: Introducing a low-cost beverage isn’t the answer

28 May 2025 | BY Dr. Viduni Basnayake


  • From a health perspective, the effects of long-term alcohol use are far-reaching. Alcohol is linked to heart disease, stroke, high blood pressure, and irregular heart rhythms
  • The liver is especially vulnerable. Long-term use can lead to fatty liver disease, hepatitis, cirrhosis, and liver cancer



The Excise Department has proposed introducing a low-cost alcoholic beverage to curb the growing use of illicit alcohol and to regain lost government revenue. Although this move may seem practical on the surface, it comes with serious concerns for public health and social wellbeing that cannot be ignored.

According to a 2022 report from the Epidemiology Unit, around 28% of Sri Lanka’s population consumes alcohol – particularly favouring domestically brewed hard and soft liquor. But, after the Government increased Excise duties by 14% early last year (2024), the price of legal alcohol went up, and sales dropped. Legal alcohol consumption declined by about 9.5% in just the first 10 months of 2024. While soft liquor sales saw a small rise, sales of hard liquor dropped sharply. This created an unintended shift as many consumers turned to cheaper, unregulated brews.

In fact, a 2023 study (‘The impact of early Covid-19 restrictions on alcohol consumption, intimate partner violence, and finances in rural Sri Lanka’ by J. Schulz, C. Cimenti, C. Priyadharsana, M. Herath, K. Seneviratne, S. Siribaddana, P.H.G.J. Pushpakumara, A. Dawson, K. Lee, F. Konradsen, T.N. Rajapakse, J. Raubenheimer, J.B. Sørensen and M. Pearson) reported that by 2013, about 40% of the alcohol consumed in Sri Lanka was illicit. And, the trend appears to be increasing. When legal alcohol becomes too expensive, unregulated and often dangerous alternatives start to thrive.

Illicit alcohol in Sri Lanka comes in many forms – bootlegged liquor, counterfeit liquor, and artificial toddy. These are typically made outside any form of government supervision. There are no safety checks, no quality control, and no oversight. In many cases, what people are drinking could be toxic or contaminated.

Counterfeit and bootleg liquors are particularly dangerous. Some contain high levels of methanol or other toxic substances that can lead to serious health-related complications, including blindness, organ failure, or death. Artificial toddy, which is sometimes made using chemical additives to mimic the effects of traditional toddy, can be especially harmful due to the unknown nature of the substances used. While some homemade spirits are produced using traditional knowledge, most are created without proper safeguards, making their alcohol content and purity unpredictable.

This brings us to the Government’s proposal. The idea is to introduce a legal, low-cost alternative that might steer people away from these dangerous brews. But, it is not that simple. Lowering the barrier to access legal alcohol does not necessarily mean that people will drink more safely – it might just mean that more people will drink.

To better understand the potential impact, it is helpful to look at what counts as ‘safe’ drinking globally. A standard drink, depending on the country, generally contains around 10-14 g of pure alcohol. That translates to about 12 ounces of soft liquor, or a 1.5-ounce shot of spirits. Safe limits are usually lower for women – typically one standard drink a day – while men may be advised not to exceed two. Binge drinking is defined as consuming more than four drinks for women and five for men in a single occasion.

Sri Lanka however, does not follow a pattern of moderate or casual drinking. Alcohol consumption here is marked by heavy, episodic drinking, especially among men. This type of drinking culture leads to a wide range of problems – medical, social, psychological, and economic.

From a health perspective, the effects of long-term alcohol use are far-reaching. Alcohol is linked to heart disease, stroke, high blood pressure, and irregular heart rhythms. In the nervous system, it can cause blackouts, seizures, nerve damage, and serious brain disorders like Wernicke encephalopathy (a serious neurological disorder caused by a deficiency of thiamine/vitamin B1) and alcohol-induced dementia.

The liver is especially vulnerable. Long-term use can lead to fatty liver disease, hepatitis, cirrhosis, and liver cancer. Other parts of the digestive system are affected too, including an increased risk of ulcers, internal bleeding, and gastrointestinal cancers. The mouth, throat, and colon are also at higher risk for cancers in people who consume alcohol regularly.

The psychological impact is equally alarming. Chronic alcohol use is linked to depression, anxiety, bipolar disorder, and even suicide. Withdrawal from alcohol, especially after prolonged use, can be life-threatening and may involve symptoms such as seizures and delirium tremens. In some severe cases, long-term alcohol abuse leads to Korsakoff's syndrome, a type of brain damage that results in memory loss and confusion.

Then, there is the impact on families and the society. Alcohol is often at the root of domestic violence, child neglect, marital issues, and broken homes. In the workplace, drinking leads to absenteeism, reduced productivity, and accidents. On the roads, alcohol is a major cause of traffic accidents due to impaired reflexes and judgment.

Financially, alcohol can ruin families – especially low-income ones. In some households, up to 40% of the monthly income is spent on alcohol and cigarettes. For example, someone who drinks a quarter bottle of strong spirits three times a week and smokes five cigarettes a day might end up spending more on these habits than on food, education, or other basic needs.

So, does introducing a cheaper, legal alternative fix this problem? Not really.

While the goal of reducing the consumption of illicit alcohol is valid and urgent, making alcohol cheaper and more widely available could backfire badly. It may send the wrong message that drinking is now more affordable and accessible and lead to a rise in overall consumption, including among young people or those who previously drank less.

The root problem in Sri Lanka is not just about the affordability of alcohol. It is about the way that alcohol is consumed, the lack of awareness about its risks, and the inadequate support systems for those struggling with addiction.

If the Government is serious about tackling the illicit alcohol problem, the solution must go deeper than creating a low-cost product. Instead, the focus should be on tightening regulation and enforcement against illegal brews and counterfeit products, expanding addiction treatment and rehabilitation services that are accessible, affordable, and free of stigma, launching community-based awareness campaigns that talk honestly about the risks of alcohol use, strengthening education and prevention programmes, especially among youth and in rural areas, and supporting families impacted by alcohol-related harm through social services and economic aid.

The country must also improve how it monitors the sale and distribution of alcohol. The Excise Department should work closely with the public health authorities to ensure that any decisions around alcohol policy are informed by health-based data, not just revenue-related needs.

Sri Lanka is already facing multiple challenges – economic, social, and public health-related. In such a context, introducing a cheaper alcoholic beverage might provide short-term financial relief through increased tax revenue. But, it risks worsening the long-term public health crisis associated with alcohol abuse.

The burden of alcohol on Sri Lanka is not just in lost tax income due to illicit trade. It is in the hospital beds filled with liver disease patients, the children growing up in households marked by alcohol-fueled violence, and the economic opportunities lost when a large part of the workforce is impacted by substance abuse.

The introduction of a low-cost alcohol product, while seemingly practical, overlooks the deeper and more damaging effects of alcohol abuse in Sri Lankan society. If anything, it is a step backward. What the country needs are sustainable, compassionate, and evidence-based approaches that put people’s wellbeing at the centre – not just the balance sheets.

(The writer is currently working as a Temporary Demonstrator at the Jaffna University’s Medical Faculty’s Psychiatry Department)

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The views and opinions expressed in this article are those of the author, and do not necessarily reflect those of this publication




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