The digital security sticker system used on alcoholic beverages is facing questions over its ability to prevent tax losses and counterfeit products.
The issue came up when Excise Department officials appeared before the Parliamentary Committee on Public Finance (CoPF). The committee questioned whether the stickers are working as intended and whether their quality could affect tax collection.
Committee Questions Sticker System
CoPF Chairman Dr. Harsha de Silva raised concerns about the financial impact of counterfeit or wrongly labelled alcohol bottles.
He pointed to a large gap between the value represented by the sticker and the potential tax loss from a counterfeit product.
According to the example given at the committee, a 10% tax could represent about Rs. 1.80 through the sticker. However, a counterfeit bottle could result in a loss of about Rs. 2,200 per bottle.
The committee also raised concerns about stickers that are poorly applied or do not meet the required quality standards.
The concerns are linked to findings in audit reports reviewed by the committee.
Excise Revenue Hits Record Level
Excise Department officials said tax revenue has increased despite the concerns over the sticker system.
An official said excise revenue reached the highest level on record in 2025. Revenue collection in 2026 has also passed the previous record.
Officials told the committee that 2026 revenue had reached about 116% of the target.
However, they acknowledged that some issues remain with the digital stickers, including concerns about their quality.
The committee will therefore need to assess whether the current sticker system is doing enough to prevent revenue leakage and protect government tax income.
The discussion highlights the gap between higher tax collection and the need to ensure that the system can prevent counterfeit products and lost revenue.
More:
Rs. 2.5 Billion Anuradhapura Transport Centre Nears Completion
Economic & Regulation Parliamentary Updates
Last modified: August 13, 2026
