Sri Lanka, Aug. 4 -- Sri Lanka loses an estimated Rs. 17.3 billion in cigarette tax revenue each year, an amount sufficient to fund the annual budget of the 1990 Suwa Seriya ambulance service almost four times over or the Mahapola scholarship scheme twice over.

Sri Lanka's cigarette tax share remains below the World Health Organisation (WHO) recommended benchmark, with tax revisions remaining inconsistent. Verite Research estimates that bringing cigarette taxes into line with this international benchmark could generate billions of rupees in additional revenue annually.

In an interview with The Sunday Morning Business, Verite Research Lead Economist Raj Prabu Rajakulendran discussed the economic costs of delayed tax revisions, shortcomin...