Sri Lanka’s beer industry will regain market share from hard liquor: Fitch Ratings

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Fitch Ratings says Sri Lanka’s beer industry will regain market share from hard liquor, following a more favourable tax regime.

With the latest tax revisions and further changes, Fitch expects, the beer market share of total alcohol consumption in Sri Lanka, to increase by about 24%-25% in the medium term, posting an average volume growth of 22% over 2017-2019.

Fitch expects hard liquor sales volumes to contract 2% over this period – reversing some of the market share gains it made in the last few years.

Fitch expects beer to regain market share which was lost to hard liquor during the last two years, when frequent tax increases on beer eroded its price advantage.

According to the Finance Ministry, during the first eight months of 2017, revenue from excise duty on liquor and cigarettes has significantly decreased by 5.9% to Rs. 73.7 billion and by 8.1% to Rs. 54.6 billion, due to a drop in the volume of sales.

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Source URL: Newsfirst.lk

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