In 2023, alcoholic drinks in Sri Lanka is facing significant challenges due to stringent regulations, high tariffs, and economic issues. Despite these hurdles, Lion Beer has maintained a dominance of 94% market share, although it experienced a decline in overall sales.
In 2023, alcoholic drinks in Sri Lanka has encountered multiple challenges, primarily due to strict import regulations and tough economic conditions. Despite these issues, Lion Beer retained its dominant 94% market share, although overall sales have declined.
The majority of Sri Lanka’s people are Theravada Buddhists, with these accounting for an estimated 70% share of the country’s total population. Most within this group view drinking alcohol as a violation of the Five Precepts, which state that Buddhists should avoid alcohol and other intoxicating drugs.
In 2023, socioeconomic factors continue to significantly impact Sri Lanka's alcoholic drinks industry. Economic challenges such as import restrictions and rising tariffs have notably influenced consumer behaviour across various socioeconomic groups.
In 2023, the logistics and infrastructure of distributing alcoholic beverages in Sri Lanka underwent significant changes driven by shifting consumer preferences and economic challenges. Price sensitivity became paramount, influencing how and where consumers purchased alcohol.
Alcoholic drinks in Sri Lanka is governed by regulations such as the Excise Ordinance and the National Policy on Alcohol Control. While there are generally no restrictions on alcohol use, laws prohibit its sale on Poya holidays and its consumption in public areas.
Significant tax reforms were implemented in Sri Lanka in 2023, particularly regarding alcohol laws, as part of the government's effort to mitigate the harmful effects of alcohol consumption by imposing progressive tariffs on high-risk commodities. In January 2023, the State Minister of Finance announced a substantial 20% tax increase on cigarettes and alcohol.
Over the forecast period, Sri Lanka's alcoholic drink sector is expected to undergo several significant developments that will continue to shape the industry. Economic factors, including higher taxes and import restrictions, will likely persist in influencing consumer behaviour.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Sri Lanka with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
If you're in the Alcoholic Drinks industry in Sri Lanka, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See All of Our DefinitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!