Export Market Guide - Sri Lanka

All regulatory information for exporting wine to Sri Lanka including the regulatory environment, duties and taxes, and permitted additives.

Sri Lanka is an island republic in the Indian Ocean, lying east of the southern tip of India. It has a population of approximately 22 million people. It has the lowest urbanisation rate among Asian countries and only around 2.3 million people live in the capital city of Colombo. English is commonly used in government and business.

The government has embarked on an ambitious program of economic development projects and large-scale reconstruction in disadvantaged areas in an effort to spur the economy. The business sector has expanded rapidly while per capita income continues to surge ahead. Sri Lanka has an open market economy and is one of the more liberalised in South Asia.

Sri Lanka’s protracted civil war ended in 2009 after 26 years of conflict. Sri Lanka’s economy has since flourished towards prosperity and has seen an emerging but growing market for imported food products. Many Australian food products are household names in the country. Sri Lanka’s tourism industry is a significant contributor to the country’s GDP. A wave of new restaurants, international hotels, resorts and upscale retailers have arrived in Colombo, Kandy and Galle. Liquor licensing has relaxed a little to allow retail stores to sell alcohol, although only the largest can afford the fees; the government is also granting soft liquor licences (beer and wine only) to smaller outlets. 

Generally, wine's affordability, notably relative to imported spirits, has made it the alcohol of choice for more Sri Lankan consumers. Overall, still wine sales fell back a little in 2023, with imports from Australia and France, two leading suppliers, falling double digits. Nevertheless, wine remains an affordable choice when compared to other imported drink options, primarily in the standard/premium price bands. Similar to India, sales of sparkling wine, especially Champagne, have been largely dependent on the wedding season. A wider choice of sparkling wines now provides alternatives for a broader range of occasions.

Impediments to growth in the category are mostly due to the excessive taxes and tariffs applied in Sri Lanka. New entrants should identify a reputable Sri Lankan importer. Often hotels, restaurants and retail outlets will deal directly through importers and distributors. The supply chain is still developing with significant challenges in regard to proper storage and refrigeration. Religious and cultural issues also need to be considered when exporting wine to Sri Lanka. Sales of liquor are prohibited on all fess moon (Poya) days, holidays marked for religious occasions, temperance days and any other days declared by the authorities for prohibition for special reasons.