The major player in the country’s beer industry, Ceylon Brewery PLC and its subsidiary, Lion Brewery (Ceylon) PLC, have said in their annual reports that the group "remains committed in its effort to institute a responsible alcohol culture."

Both companies were strongly critical about the country’s existing excise policy saying that Sri Lanka had for too long allowed proliferation of a "drunken culture."

"Spirits have held a significant advantage over a standard lager on a kick-per-buck’ basis, compelling consumers to choose hard alcohol over soft," the companies said in their annual reports.

"The issue of overpricing, coupled with the lack of availability – distribution of beer is restricted by government to just 2% of the country’s retail universe - has led to a flourishing illicit trade, which consumes over 90% of beverage alcohols produced.

They claimed that illicit alcohol consumption, despite excise action, continues at alarming levels and estimated that Lankans spent as much as Rs.45 billion on illicit liquor annually.

"None of this money reaches government coffers. Unfortunately, policy-makers of all hues have ignored the extent of harm done to health, society and the economy at large by the illicit alcohol trade," the beer companies said.

The brewers advocated a responsible alcohol culture modeled on education, communication and providing an environment conducive for the least harmful alcohol beverages.

The companies claimed that in developed markets, soft alcohol consumption constituted well over 85%, whereas in Sri Lanka it barely exceeds 3%.

Both companies expressed strong confidence that a well thought out alcohol policy will succeed in meeting the twin objectives of a lower per capital consumption of pure alcohol significantly increasing tax revenue to the state.