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Several posts claimed that Parliamentarian Dr. Harsha de Silva had purportedly said that Rs. 3,200 of the Rs. 3,700 prices of an arrack bottle is pure tax. The number spread from a newspaper front page into TV bulletins and Facebook reels. We investigated. Here is what we found.
Social Media Posts
A report in the Divaina newspaper, headlined “Rs. 3,200 of a Rs. 3,700 arrack bottle is tax – Dr. Harsha de Silva,” was also picked up by mainstream television:
The same claim was also shared widely on social media:
Facebook | Facebook | Facebook
Other Mainstream Media Reported the Tax as Rs. 2,200, Not Rs. 3,200
We first checked whether other mainstream outlets had reported the statement, and how. They had, but they put the tax at Rs. 2,200, not Rs. 3,200. Those reports quoted Dr. Harsha de Silva as saying, “Rs. 2,200 of a liquor bottles sold for Rs. 3,700 is tax. Only the Divaina report gave the figure as Rs. 3,200.
What Dr. Harsha de Silva Actually Said
Because the figures reported by different outlets contradicted one another, we checked what Dr. Harsha de Silva actually said. On 12 August 2026, Excise Department officials were summoned before the Committee on Public Finance (COPF).
During a discussion on the impact of stickers and digital printing on excise revenue, the COPF Chairman, Dr. Harsha de Silva, asked how much tax was imposed on a locally produced arrack bottle priced at Rs. 3,700. The officials replied that it was approximately Rs. 2,200, not an exact figure, but about that. Dr. de Silva can then be heard restating, “Rs. 2,200 out of Rs. 3,700 is tax.”
The Current Tax Rates on Liquor
Sri Lanka last revised excise duty on liquor with effect from 11 January 2025. Through Excise Notification No. 01/2025, issued by President Anura Kumara Dissanayake as Minister of Finance, excise duty rates rose by about 5.9%. Further details are here and here.
After the 5.9% revision, the official excise duty rates per liter of pure alcohol are as follows.
| Type of liquor | Excise duty (per liter of pure alcohol) |
| Special Arrack | Rs. 7,244.00 |
| Other locally produced arrack (Coconut, Palmyra, Molasses) | Rs. 7,752.00 |
| Locally produced foreign spirits (Brandy, Whisky, Gin) | Rs. 7,969.00 |
| Strong Beer (alcohol content above 5%) | Rs. 6,015.00 |
| Standard Beer (alcohol content 5% or below) | Rs. 5,735.00 |
In Sri Lanka, liquor is taxed at a fixed rate per liter of pure alcohol in the finished product. On top of that sit an 18% Value Added Tax (VAT) and a 2.5% Social Security Contribution Levy (SSCL). Once every government tax is counted, more than 65% of what the consumer pays goes straight to the state as tax revenue.
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Conclusion
Our fact-check found that the posts claiming Dr. Harsha de Silva said Rs. 3,200 of a Rs. 3,700 liquor bottle is tax are misleading.
When Excise Department officials appeared before the Committee on Public Finance, its Chairman, Dr. Harsha de Silva, asked how much tax applied to a Rs. 3,700 arrack bottles. Officials said it was approximately Rs. 2,200, and Dr. de Silva restated that figure: “Rs. 2,200 out of Rs. 3,700 is tax. The Rs. 3,200 figure came only from the Divaina report.
Title: Did Harsha de Silva Say Rs. 3,200 of a Rs. 3,700 Local Arrack Is Tax?
Fact Check By: B.P. Hansani
Result: Misleading
