A new report challenges Sri Lanka's prohibition approach to nicotine products, arguing that the blanket ban has failed to reduce consumption while creating an unsafe, unregulated black market estimated at significant value, prompting calls for a regulated alternative similar to strategies adopted by New Zealand and…

Sri Lanka's strict prohibition on nicotine products has produced an extensive underground market operating entirely outside regulatory oversight, according to a report by 'Prohibition Does Not Work.' Despite being the first Asian nation to ratify the WHO Framework Convention on Tobacco Control, tobacco-related non-communicable diseases account for roughly 83% of all deaths nationwide, with 1.86 million Sri Lankan men continuing to smoke. A 2025 Parliamentary inquiry found that enforcement actions were yielding few successful prosecutions, suggesting the current framework is fundamentally ineffective.

Nicotine products currently circulate through informal retail networks, social media platforms, and online marketplaces, with no legal imports recorded by Sri Lanka Customs. These illicit channels operate without product safety standards or age restrictions, and the report documents marketing tactics—including cartoon graphics and sweet-flavored branding—seemingly designed to attract younger consumers. Smuggling routes primarily run from China and the UAE through mis-declared commercial shipments. The report cites international examples where prohibition has similarly backfired: Brazil's 16-year ban created a USD 1.03 billion illicit market, while Australia's prescription-only approach resulted in a USD 750 million to USD 1.3 billion black market accounting for 95.7% of total vapour sales. Notably, Australian vaping rates among 14-to-17-year-olds jumped from 0.8% in 2018 to 14.5% in 2023 during the prohibition period.

The report argues that regulation offers a more effective harm reduction strategy. New Zealand reduced smoking rates from 18.4% to 8.3% over a decade through regulated alternatives, while Sweden approaches 5% smoking prevalence by integrating reduced-risk products into its tobacco control strategy. A 2025 Lives Saved Report estimates that 85,000 lives could be saved in Sri Lanka by 2060 if adult smokers switched to substantially lower-risk alternatives within a robust regulatory framework. The IMF recommended in March 2026 that lower-risk nicotine products be taxed at lower rates than cigarettes to incentivize switching—a recommendation that contradicts Sri Lanka's current approach and the WHO Framework Convention's explicit inclusion of harm reduction strategies.