📈 Sri Lanka Loses Rs. 25 Bn by Under-taxing Cigarettes

A failure to align cigarette taxation with World Health Organisation (WHO) standards has cost the Sri Lankan government over Rs. 25 billion in potential revenue since 2025, according to Verité Research. • The Revenue Gap: Sri Lanka lost more than Rs. 8 billion in the first six months of 2026 alone. • Taxation Deficit: The WHO recommends a tax share of at least 75% of the retail price. While Sri Lanka neared this in 2018 at 74%, the tax share has dropped to 67% from 2025 onwards. • Real-Time Monitoring: Verité Research has launched the 'Cigarette Tax Leakage Tracker' on PublicFinance.LK to track these fiscal losses minute-by-minute, highlighting missed opportunities for national budget optimization.