Government provided 17.3 bn rupee tax concession for cigarettes during 2026

The government provided a tax concession of 17.3 billion rupees for cigarettes during the year 2026, according to Verité Research Executive Director Dr Nishan de Mel.

The institution points out that 75% of the price of a cigarette should be a tax, as recommended by the World Health Organisation. However, he points out that the relevant ratio in Sri Lanka dropped to 66.8% since the year 2018. Furthermore, it noted that whilst value-added tax, social security contribution levy, and other taxes increased during the period from 2021 to 2026, the tax burden on cigarettes decreased by 7.6%.