Entrepreneurial Spirits in Toddy Production in Sri Lanka: Is Kasippu Worth a Shot?

Tanya Vidanagama () and Cherisse Hoyte ()
Additional contact information
Tanya Vidanagama: Bath Spa University
Cherisse Hoyte: Coventry University

Chapter Chapter 5 in Destructive Entrepreneurship in Emerging Markets, 2025, pp 69-85 from Springer

Abstract: Abstract In recent years, Sri Lanka has seen a resurgence of interest in toddy tapping to produce its local alcoholic beverage, Arrack. Once seen as a poor man's drink, this centuries old spirit has become a favorite of the hipster generation and can be found in bars across UK, France and Germany. While toddy tapping itself is a legal and regulated endeavor, the fermentation process of the coconut tree sap to create Arrack or its illegal counterpart, Kasippu is where this once dying industry begins to blur the lines between productive and destructive entrepreneurship. Sri Lanka is one of the highest per capita alcohol consuming countries in the world despite the 20% increase of import duties on foreign alcohol and the high tax on local spirits. However, only 20% of the liquor consumed in Sri Lanka is legal. The country has been experiencing rising costs of raw materials and soaring inflation coupled with a low per capita income for households, which has contributed to the rise in prices of Arrack. Statistics show that revenue from legal alcohol (Arrack) has declined by 6% in 2020. This chapter explores the demand for cheap alcohol and the factors that are fueling the 80% illegal alcohol consumption in Sri Lanka. It will analyze under what conditions the production and sale of Arrack and Kasippu coexist. This chapter contributes a dual perspective on destructive entrepreneurship by highlighting the toddy tapping industry as an example of economically and socially harmful entrepreneurial activity that results in negative externalities and negative impact on society.

Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-0112-7_5

Ordering information: This item can be ordered from
http://www.springer.com/9789819601127

DOI: 10.1007/978-981-96-0112-7_5

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().