Sri Lankan consumers are bracing for a hit to their wallets as prices of Special Arrack and Coconut Arrack are set to increase by approximately Rs. 400 per bottle. This move comes in response to the government's decision to raise Excise duty and Value Added Tax (VAT) on alcoholic beverages, a decision that is reverberating across various items, leading to a broader spike in prices.

The Excise duty and VAT adjustments are part of the government's fiscal policy, aiming to generate additional revenue to meet economic challenges. However, the direct impact is visible in the increased costs for consumers, particularly those who enjoy Special Arrack and Coconut Arrack.

The price hike is a direct result of a substantial increase in Excise duty and VAT applied to alcoholic beverages. As a result, consumers can expect to pay approximately Rs. 400 more for each bottle of Special Arrack and Coconut Arrack.

This decision has also led to an uptick in prices for several other items, as businesses pass on the increased costs to consumers.