The Ceylon Tobacco Company (CTC) has contributed LKR 25.5 billion (EUR 155 million) towards government revenue during the first half of 2009, which was an increase of seven per cent over the same period last year.

Sales volume continued to decline further as a direct result of the higher excise-led price increases and lower consumer affordability. Meanwhile law enforcement authorities’ efforts to crack down on cigarette smugglers netted in over 50 million illegal cigarettes to the value of LKR 750 million (EUR 4.6 million). Gold Seal remains the main smuggled brand, while smugglers rake in additional profits through counterfeit cigarettes. The number of confiscated cigarettes tripled this year, with the latest estimates standing at 63 million cigarettes. (sra)