- Record collections as enforcement stepped up
- Excise shuts liquor giant; over Rs. 5b in dues
The Excise Department has recorded a sharp increase in revenue for the first half of 2025, collecting Rs. 120.5 billion — a 102.6 percent rise compared to the corresponding period last year and exceeding its mid-year target.
The Department’s senior officials said it is on track to surpass its annual target of Rs. 242 billion, up from last year’s target of Rs. 230 billion. In 2024, the total collection stood at Rs. 226.7 billion. The surge has been attributed primarily to a rise in legal alcohol sales and intensified enforcement of excise laws, said Additional Excise Commissioner General Rohana Senaratna. He credited the increase to enhanced regulatory measures under the present administration. A key contributor to the success was countrywide raids targeting illegal alcohol production and unlicensed sales. “Every Excise station in the country was given strict revenue and enforcement targets,” Senaratna said. “We carried out extensive inspections of licensed outlets and cracked down on illicit distilleries with the Police conducting the majority of raids.”
The “Tax Week” initiative introduced last month under President Anura Kumara Dissanayake’s “Badu Shakthi” program to raise public awareness about taxation and to broaden the country’s tax base, also contributed to its success, he said.
The Department also turned its focus towards large-scale liquor manufacturers suspected of long-term tax evasion, he said.
Excise officials said that some major producers have been under-reporting their production and sales, costing the State billions in lost revenue.
Senaratna said the Department has already sealed a major liquor company that has failed to pay taxes for over eight years, and legal action is being initiated to recover over Rs.5 billion in unpaid excise duties.
“The Department has begun collecting fines and back taxes from key industry players who have avoided their tax obligations for years,” he added.
Excise Department Deputy Commissioner for Research and Academic Affairs and media spokesman Prashan Perera said that the Police played a central role in the enforcement effort.
“Police carried out 90 percent of the raids on illicit liquor operations, including those during the National Tax Week, which began on June 2, while Excise officers concentrated on tax enforcement and compliance for the most part,” Perera said. The specialised Police Vice Squad at Walana also took part in the operations.
The combined efforts of the Police and Excise officers resulted in thousands of raids across the country. Public awareness campaigns also contributed to improved compliance.
“Through increased inspections, targeted enforcement, and public education, we have not only boosted revenue but also strengthened regulatory compliance,” Perera added.
Senaratna said that the rising public awareness about the dangers and economic and health costs of illicit alcohol such as Kasippu has also helped the Department.
The Excise Department plans to continue its enforcement drives and compliance campaigns throughout the year, with probes under way on tax-dodging legal alcohol manufacturers.
