Why Prohibition Fails: The Case for Smoke-Free Regulation in Sri Lanka

New Report Warns Sri Lanka’s Vape Prohibition Is Fueling Black Markets and Undermining Public Health

15 May 2026. Sri Jayawardenepura Kotte, Sri Lanka.  

A new report released today by Prohibition Does Not Work (PDNW) warns that Sri Lanka’s prohibitionist approach to vapour products is fueling black markets, weakening consumer protections, and undermining efforts to reduce smoking. The report, Why Prohibition Fails: The Case for Smoke-Free Regulation in Sri Lanka, finds that despite strict restrictions, illegal vapour products are now widely available through informal retail networks, social media, and online sellers.

“Sri Lanka is learning the same lesson many countries around the world have already learned: prohibition does not eliminate demand. It simply hands the market to smugglers and criminal networks,” said Prohibition Does Not Work spokesman Tim Andrews. “The choice is not between vaping and no vaping. It is between a regulated market and a criminal one.”

The report notes that approximately 1.86 million Sri Lankan men still smoke and that tobacco-related disease remains a major public health burden. It also points to evidence from countries such as the United Kingdom, Sweden, and New Zealand showing that regulated access to lower-risk nicotine alternatives can accelerate declines in smoking rates. The report further warns that Sri Lanka risks repeating the mistakes seen in countries such as Australia and Brazil, where prohibition and excessive restrictions have fueled massive illicit markets.

• In Brazil, where vapour products have been banned since 2009, the illicit market reached approximately USD 1.03 billion in 2025.

• In Australia, restrictive policies have led to a black market worth between USD 750 million and USD 1.3 billion, accounting for an estimated 95.7% of total sales.

“Prohibition does not protect young people,” said Michael Ellis, former Assistant Director at Interpol and advisor to Prohibition Does Not Work. “Illegal dealers do not ask for ID, do not follow safety standards, and do not care who they sell to. If policymakers are serious about reducing smoking and protecting consumers, they need regulation grounded in evidence, not policies that strengthen illicit trade.”

“If Sri Lanka is serious about reducing smoking rates and cutting crime, it needs to end its failed prohibition of vapour products and replace it with an evidence-based regulatory framework that protects consumers instead of criminals,” Andrews concluded.

The full report is available HERE.

About Prohibition Does Not Work

Prohibition Does Not Work is a global advocacy platform highlighting the unintended consequences of prohibitionist policies and promoting evidence-based regulation that protects consumers, reduces harm, and supports public health goals.

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