Marked drop in cigarette production

Cigarette production in Sri Lanka has dropped by around 20 percent during the past five years, according to government statistics.

Cigarette production has dropped from 4900 million to 4200 million from 2005 to 2010, the survey revealed.

According to a survey conducted by the World Health Organisation, Sri Lanka is the least cigarette consuming country among 40 countries with daily smoking among males being around 18.6 percent.

Dr. Sajeeva Ranaweera of the Sri Lanka Medical Association said that Sri Lanka is among the few countries where cigarette smoking could be brought down to less than five percent without a ban.

He said there has been a marked decline in cigarette smoking over the years due to the collective effort of organisations and the increase in taxes on cigarettes.

“Education and awareness programs have helped reduce tobacco consumption in the country which spends a colossal sum of money every year on tobacco related health hazards”, Dr.Ranaweera said.

According to the National Authority on Tobacco and Alcohol (NATA), the increase in tax on cigarettes will help reduce cigarette smoking and boost government revenue for the health sector and social welfare schemes in the country.

The government revenue a year from cigarette sales is around Rs.40 b.

Verte Research Executive Director Dr. Nishan de Mel said if the gap between income levels and taxes on cigarettes had been bridged the government would earn Rs.100 b.

According to research the price of a cigarette had not increased according to the income level in the country. If the gap is bridged today the government will earn a revenue of Rs. 16 b every year.

To correct the past lapses in affordability adjustments a 50 percent price increase on cigarettes is needed from 2009, according to research.

An economist said that taxes on cigarettes should be increased gradually in keeping with the income levels of people in the country.

NATA Chairman, Prof. Carlo Fonseka said that prices of cigarrettes should be increased across the board and added that increasing the prices of certain brands will encourage people to use cheaper brands which could be more harmful to health.

NATA plays a vital role in reducing alcohol and tobacco consumption and promoting a healthy society in the country. The organisation has been strongly lobbying for the effective implementation of the NATA Act which will help to reduce the health burden on the country due to tobacco consumption. According to research there is a clear co-relationship between prices and smoking of cigarettes in Sri Lanka. When the price of a cigarette increased by 10 percent consumption drops by five percent.