Sajith Accuses Government of Gifting Tobacco Industry Billions While Burdening Ordinary Sri Lankans

Opposition Leader Sajith Premadasa has levelled a serious accusation against the government, claiming that recent tax concessions granted to the cigarette industry have cost Sri Lanka a staggering Rs. 17.3 billion in lost revenue — a move he describes as deeply unjust at a time when ordinary citizens are being crushed under an ever-growing tax burden.

A Tale of Two Tax Policies

Premadasa, who leads the Samagi Jana Balawegaya, painted a stark contrast between the financial pressures faced by everyday Sri Lankans and what he characterises as favourable treatment extended to powerful corporate interests in the tobacco sector. While the public has been subjected to increased taxation as part of the country's ongoing economic recovery efforts, the opposition leader argues that well-connected industries have been quietly handed relief at the nation's expense.

Billions Lost, Public Pays the Price

According to Premadasa, the reduction in cigarette taxes has resulted in a revenue shortfall of Rs. 17.3 billion — funds that could have meaningfully contributed to public services, debt repayment, or social welfare programmes that struggling Sri Lankan families desperately need.

The government speaks of fiscal discipline and shared sacrifice, yet behind closed doors it appears certain industries are being shielded from that very sacrifice, the opposition leader suggested.

Opposition Demands Accountability

The opposition has called on the government to provide a full and transparent explanation of the tax adjustments made to the tobacco sector, including the rationale behind any reductions and the projected impact on state finances.

Premadasa's remarks come amid broader national debate over Sri Lanka's tax structure as the country continues to navigate its path out of its worst economic crisis in decades. Critics have long argued that the burden of economic recovery has fallen disproportionately on low and middle-income earners, while large corporations and specific industries enjoy preferential conditions.

The government is yet to formally respond to the specific figures cited by the opposition leader.