COLOMBO (EconomyNext) – Sri Lanka’s cigarette sales rose 11 percent in the first quarter of 2015, with tax revenues to the state up 20 percent from a year earlier to 21.3 billion rupees, Ceylon Tobacco Company said.
The firm said stronger sales could be attributed to a "higher level of consumer confidence and an increase in disposable income."
The firm said they also noticed volume growth in ‘Beedi’ a type of low priced product made mostly by small time manufacturers.
"The volume growth in un-regulated low priced products such as Beedi remains a key risk to government revenue contribution from the regulated cigarette industry," CTC said.
Authorities had also raided tax-unpaid cigarettes and seized six million illegal cigarettes with a street value of 180 million rupees.
CTC had also started placing pictorial health warnings from January 15, on packs after going to court to stop or delay the process.
Revenues with taxes grew 22.2 percent to 25,916 billion rupees in the March 2015 quarter and net revenues grew 21.17 percent to 6,353 million rupees.
Net profits after tax rose 22.9 percent to 2,490 million rupees in the quarter with earnings per share at 13.29 rupees.
CTC estimated its liability under a proposed retrospective 25 percent extra ‘super gains tax’ at 3.8 billion rupees for the past year. The law is expected to be passed this month.