Sri Lanka’s largest beer seller Lion Brewery PLC (LION) in their latest quarterly review highlights that Government revenue from the country’s beer industry grew by Rs. 8.2 billion to Rs. 35.4 billiojn during the financial year ended 31^st March 2019.

The financials of LION highlights that during the 12 months ending 31st March 2019, on a turnover of Rs. 42.8 billion, company achieved a post‐tax profit of Rs. 3.2 billion.

“The pickup in tourism has been a key contributor to our results” the company notes in its review adding that in the last month of the financial year, beer taxes were increased by 12.5%. Report further states that excise duty on the major contributor to arrack volumes – Extra Special Arrack – remained unchanged whilst, those of other arracks were increased by 7.5%.

“Once again it seems that policy consistency is being compromised, an age‐old challenge for the private sector in Sri Lanka. Ostensibly, the tax on Extra Special Arrack remained unchanged since it was the “poor man’s drink”. Encouraging the “poor man” or for that matter anyone to drink the much more harmful hard alcohol is an unusual policy measure to say the least” the company stresses in its latest financial review.

In its financial review company urge policymakers to give confidence to the private sector by being consistent with policy adding that they have noted the intent of Government – as stated in the budget speech ‐ to index future increases in alcohol taxation to a transparent data point such as GDP growth.

“We are fully supportive of such an initiative & hope that it will be implemented without delay” LION Breweries’ management adds in the financial review.

Report states that whilst the new financial year commenced on a positive note, the tragic events of 21st April 2019, will leave a deep scar on the collective psyche of all Sri Lankans.

“Unfortunately, the economy has taken a few steps back because of these events and we are likely to see a significant drop in tourism in the months ahead” report states adding that whilst this has the potential to challenge the company’s results in the immediate future, management is taking all possible steps to continue the positive momentum achieved in the year just concluded.

Reporting by Devendra Francis