📈 Proposed Single Cigarette Ban: Economic & Market Risks

Sri Lanka's Sectoral Oversight Committee (SOC) is re-evaluating a total ban on the sale of individual cigarettes. While driven by health concerns, the proposal faces significant pushback regarding its economic impact on small retailers and the potential for market distortion. • Economic & Health Toll: Data from NATA indicates an annual economic loss of Rs. 225–240 billion and approximately 22,000 lives lost to tobacco and alcohol-related causes. • The Unregulated Market: Experts warn a ban on "single sticks" could drive consumers toward the Beedi market (priced at Rs. 10/stick) or illegal smuggled cigarettes. The illegal cigarette trade already deprives the government of over Rs. 100 billion in annual revenue. • Impact on MSMEs: For the "Petti Kade" (micro-retailers), cigarettes act as a "bridge product" that drives foot traffic for other essentials. A full pack currently costs upwards of Rs. 3,200, a price point inaccessible to many consumers in the current economic climate. • Key Concern: A shift from legal sticks to unregulated alternatives could undermine public health goals while squeezing the daily cash flow of thousands of small-scale shopkeepers and reducing national tax collection. _Status: Currently under discussion within the Sectoral Oversight Committee._ ---