By Nidarshana Selladurai and Sampath De Seram
Sri Lanka’s alcohol tax increases generate a multitude of benefits
Sri Lanka bears a heavy burden of alcohol-related deaths, injury and harm, claiming between 40 and 50 lives per day. Alcohol also fuels domestic violence and it puts severe strains on family finances, as well as our country’s economy as a whole.
Against this backdrop, there has constantly been a vibrant civil society led movement to reduce population-level alcohol consumption and related harms and costs in Sri Lanka. For over three decades, ADIC, along with other grassroots organizations has engaged in advocacy, campaigning, and community empowerment efforts to bring about policies that prevent and reduce alcohol harms to promote health, happiness, and sustainable development.
In 2023, ADIC’s efforts – supported by the RESET Alcohol Initiative – significantly contributed to alcohol tax reforms in Sri Lanka. Our government implemented two major alcohol tax increases. The first increment took place in July 2023, amounting to 20%. However, this was not sufficient to generate revenue and address health harms due to alcohol. The second increment took effect in January 2024, amounting to 14%.
The benefits of these tax increases are already evident. Higher taxes have curtailed alcohol affordability, leading to reduced consumption, a decline in alcohol-related health issues, and significant increases in government revenue. The alcohol tax increase led to a Rs. 11.6 billion rise in alcohol tax revenue, with a corresponding decrease in alcohol consumption by 8.3 million liters (net).
Communities Mobilize to Advocate for Alcohol Policy Reforms
Robust community mobilization efforts have led to the success of these reforms. Grassroots networks spanning across 15 districts mobilized over 280 civil society organization members, fostering widespread support for alcohol taxation. Advocacy initiatives included workshops, forums, and media campaigns that engaged government officials, youth, and media representatives. These forums encouraged diverse participation in campaigns exposing alcohol industry interference and advocating for policy change.
We reached various groups through these efforts, including influential civil society organisations in our country, influencers and opinion leaders. Strategic alliances with organizations like the Sri Lanka Medical Association enhanced the credibility and reach of our joint advocacy efforts.
Survey Shows Majority of People Support Alcohol Tax Increase
A pivotal element of the campaign was the public opinion poll, which revealed overwhelming concern about alcohol-related harm and support towards tax reforms among the general public in Sri Lanka.
This timely research conducted by ADIC and our RESET Alcohol Initiative partner Vital Strategies revealed the truth about people’s attitudes, knowledge, and support for alcohol policy.
An overwhelming 97% of the adults included in the survey stated that alcohol harm is a problem in our country.
75% endorsed higher alcohol taxes. Moreover, the people’s largest concern about alcohol consumption was its link to domestic violence and household economic strain.
These insights were instrumental in stimulating policymakers’ support for the tax reforms.
Strategies and Tools Used for Pro-Health Tax Advocacy
Our advocacy campaign employed a multifaceted strategy, combining evidence-based research, strategic media outreach, and direct engagement with stakeholders. The two month media campaign especially garnered extensive media coverage, disseminating the message effectively across a large audience.
Together with RESET Alcohol Initiative partners we created social media and social marketing campaigns, including impactful videos highlighting the human cost of alcohol harm. And to to disseminate compelling evidence about the benefits of higher alcohol taxes we developed briefs, press releases, and held a strategically timed national media conference.
We’re really proud of our use of innovative tools like political mapping together with Movendi International. We were able to involve and co-develop political mapping with community groups from around the country to identify the level of support and the level of political capital of different stakeholders, such as members of parliament and government officials for alcohol policy in general and alcohol taxation in particular.
Based on our comprehensive and ambitious political mapping we could involve local people to identify supportive stakeholders, or those that we could work to persuade, as well as CSOs and community groups who have the capacity to reach and convince members of parliament to support alcohol taxation reform.
The creation of advocacy toolkits, social media campaigns, and widespread dissemination of public opinion poll results further strengthened the narrative for the urgently needed alcohol tax reform.
A Window of Opportunity Where Our Economic Crisis Sparks Interest in Tax Reforms
Sri Lanka’s alcohol tax reforms unfolded against the backdrop of a severe economic crisis in 2022. Our country faced surging inflation, shortages of essential goods, and widespread protests, marking one of the most challenging periods in history. This crisis resulted in Sri Lanka’s failure to meet foreign debt obligations, prompting the government to negotiate a rescue deal with the International Monetary Fund (IMF) in 2023.
As part of the IMF’s recovery package, the government was urged to raise taxes to stabilize the economy. Among the IMF’s recommendations was an increase in excise taxes on alcohol – a proposal that presented a dual opportunity: to generate much-needed revenue and address the public health burden and costs of alcohol harm.
We in ADIC and other civil society partners recognised this as a crucial moment to advocate for raising alcohol taxes. With support of the RESET Alcohol Initiative, we launched a strategic media campaign to build public and stakeholder support. Our combined advocacy efforts were a critical contribution to ensure the government actually follows through on implementing the IMF’s recommendations.
We highlighted the alignment between fiscal responsibility and public health progress and succeeded in holding the government accountable to implement the two alcohol excise tax increments.
Key Take Aways From Our Journey in Mobilizing for Change
The process of advocating for alcohol tax reforms in Sri Lanka has underscored several key take aways for us.
- Success hinges on a broad and inclusive approach, where both formal campaigns and informal activities play a role in building momentum.
- Mobilising communities to create pressure and awareness has been essential to influencing policymakers, especially when combined with clear, relatable messaging about the benefits of reform.
- Thorough planning, from analysing political support to preparing robust counter arguments proved vital in navigating challenges, instead of ad hoc interventions.
- Every opportunity to engage, whether through media, public forums, or grassroots networks, contributed to shaping the public discourse and advancing a successful narrative to gain widespread support.
- Ultimately, these experiences highlight the importance of adaptability, transparency, and teamwork in driving meaningful alcohol policy changes.
Challenges and Next Steps
While the alcohol tax reforms in Sri Lanka mark significant progress, sustaining and advancing these gains remains a challenge. The alcohol industry continues to push back, employing tactics such as disseminating false and misleading research to foster public skepticism about the effectiveness of alcohol policy reforms.
A major false narrative that the alcohol industry in Sri Lanka creates at the moment is that the proposed alcohol tax increases would drive up illegal and illicit alcohol markets in our country. Further efforts are necessary to counter industry narratives and build effective public awareness about the broader benefits of alcohol taxation.
Sri Lanka’s alcohol tax reforms illustrate the transformative impact of strategic advocacy and community mobilization. By addressing the dual burdens of alcohol-related harm and economic instability, these reforms have set a precedent for public health victories in the region. However, the journey is far from over. Sustained efforts are essential to ensure that these gains are preserved and that Sri Lanka continues to enjoy the benefits of advancing public health through effective alcohol policies.
About Our Guest Experts
Nidarshana Selladurai
Nidarshana is Program Officer at the Alcohol and Drug Information Center (ADIC).
You can follow Nidarshana’s work on Facebook.
Both guest experts work at Movendi International member organization ADIC. You can follow ADIC’s important work on Instagram, on Facebook, and on the official ADIC website.
