The Economics of Tobacco in Sri Lanka

Arunatilake, Nisha; Opatha, Maduwanthi

The Economics of Tobacco in Sri Lanka

Date

2004

Authors

Arunatilake, Nisha

Opatha, Maduwanthi

Publisher

Center for Tobacco Control Research and Education, UC San Francisco

Abstract

This paper describes trends in tobacco use in Sri Lanka, assesses the economic contribution of the industry (jobs, earnings, tax revenues and trade balance), and analyses the relationship between demand for cigarettes and prices and incomes, looking at different socioeconomic groups. It uses the estimated elasticities to simulate the likely impact of a tax increase on prices, government revenues and on demand, expenditures and tax burdens of different socio- economic groups.

Keywords

Sri Lanka, tobacco, tobacco tax, cigarettes, cigarette tax, economics of tobacco, economics of tobacco control, smoking, tobacco policy, price elasticity, demand for cigarettes, prevalence, bidi, cigars, tobacco tax revenues, tobacco industry emplo yment, tobacco industry wages, tobacco farming