Sri Lanka Excise Revenue Surpasses 2025 Target as Alcohol Production Rebounds

Sri Lanka’s Excise Department recorded a strong performance in 2025, exceeding its annual tax revenue target and marking one of the most successful years in recent times for the alcoholic beverages sector. According to the latest performance summary, the tax target for 2025, excluding production tax on exports, was set at LKR 227.4 billion, while actual collections reached LKR 232.9 billion, achieving 102.4% of the target. Including production tax on exports, revenue climbed to LKR 255.1 billion against a target of LKR 240 billion, representing an impressive 106.3% achievement.

The 2025 performance stands out especially when compared with the previous few years. In 2024, revenue collections reached LKR 226.8 billion, achieving 97.8% of the target. In 2023, collections were lower at LKR 181.1 billion, reaching only 83.5% of the expected target. Earlier years also saw mixed performances, with 2022 recording 94.6%, 2021 at 99%, and 2020 at 93.1%. This makes 2025 one of the strongest recovery years for the industry in recent history.

Alcohol production also showed positive momentum during 2025. Spirits production increased to 23.3 million liters of pure alcohol, recovering from 19.7 million liters in 2024. Beer production rose to 15 million liters of pure alcohol from 14.2 million liters the previous year.

The report also noted that 18 companies achieved 100% of their production targets in 2025, while four companies reached between 90% and 99%, showing improved industry compliance and operational efficiency.

With revenue targets surpassed, production volumes rising, and stronger company performance, 2025 has become a landmark year for Sri Lanka’s alcohol industry, signaling renewed growth and stronger contributions to the national economy.