MONETABRIEF – Sri Lanka's Customs has destroyed 2.8 million smuggled cigarettes at the Western Power Plant in Kerawalapitiya, generating among the most expensive electricity in the country, based on the market value of the feedstock.
Deputy Commissioner of Customs Chandana Punchihewa said the cigarettes had a commercial value of 677 million rupees and potential tax fraud of 439.7 million rupees.
Western Power Plant is a waste-to-energy plant which usually burns municipal waste, not cigarettes worth hundreds of millions of rupees.
Based on previous data released by Aitken Spence group which owns the plant, the 2.8 million cigarettes could generate about 1350 kiloWatt house (units) of electricity.
To generate a unit of electricity around 500,000 rupees worth feedstock was burnt based on the market valued of the seized cigarettes.
The fags were seized at the main airport in Katunayake between 22 April 206 and 27 July 2026, Punchihewa said.
Sri Lanka has high taxes on cigarettes promoting smuggling. Amid high inflation created by macro-economists, people are also turning into beedi, a lower cost alternative to cigarettes. (Colombo/Oct29/2026)