Sri Lanka

In 2022, the tobacco industry continues to witness rising prices due to tax increases and global inflation rates. This has boosted the illicit trade as low-income consumers are finding smoking increasingly unaffordable. Meanwhile, demand for…

Low consumer spending due to the economic crisis was not the only issue that snacks players faced in 2023 as the falling exchange value of the Sri Lankan rupee, limited access to foreign currency, supply chain issues and interruptions to the power…

Sri Lanka experienced an economic crisis in 2022 with hyperinflation and severe import restrictions due to a lack of dollars. Many retailers struggled to meet demand with the country experiencing severe shortages, including for key products such as…

After being negatively impacted by the COVID-19 pandemic, alcoholic drinks in Sri Lanka faces a new set of challenges in 2022. Firstly, global inflation is causing prices to rise, which has led many consumers to become more price sensitive and…

2022 was a tough year for home care with Sri Lanka experiencing an economic crisis which has led to hyperinflation and severe import restrictions due to a lack of dollars. Local manufacturers were also unable to import sufficient raw materials.…

There is a sizeable market for beauty and personal care in Sri Lanka but economic constraints and government restrictions on imports is restricting growth. While brand loyalty plays a role, due to the current challenges price and accessibility were…

Major political instability and distressed government finances have blighted Sri Lanka, which is ‘mostly unfree’ for economic freedom. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely…

In 2021 retailing in Sri Lanka returned to positive growth after two years of decline. The bombing of April 2019 and general uncertainty linked to the elections followed by the onset of the pandemic in 2020 and government measures imposed to control…

The industry saw fluctuating demand and supply, mainly due to the economic crisis, with heavy import restrictions pertaining to the US dollar shortage. Tissue and hygiene products are considered essential in Sri Lanka. However, shortages of imported…

Rice remains the most important category of staple foods, with bread also an important source of nutrition for much of the population. Meat substitutes remains another important category, with soy-based products representing excellent value for…

In 2022, the destruction caused by the COVID-19 pandemic is coming to an end, and the industry is recovering in that sense. However, soft drinks now faces a new set of challenges due to global inflation and fuel shortages, both of which are making…

Sri Lankans’ long-standing enjoyment of tea continues, with a shift to packaged tea and international recognition of the country’s tea quality benefiting sales. However, in 2022, hot drinks in general is witnessing many crises. Firstly, the industry…

The economic crisis took its toll on Sri Lanka’s consumer health industry during 2022 as price controls combined with scarcity in foreign exchange reserves to hamper imports of essential medicines. This led to supply shortages across the industry…

With Sri Lanka facing its worst economic crisis in 74 years, product shortages and price hikes have recalibrated consumer demand and supply patterns across all categories of cooking ingredients and meals. Manufacturers are struggling due to the…

Despite the challenges presented by COVID-19 sales of dairy products and alternatives have remained stable since 2020. However, the industry is now being impacted by the rising cost of raw materials and imports in 2022. The government stated in 2021…

The commodities country overview provides comprehensive data on production, consumption and price trends in key commodities markets. The commodities overview in Sri Lanka covers production and consumption trends in agricultural commodities, energy…

The number of households is set to increase moderately in Sri Lanka over 2021-2040, with couples with children remaining the dominant household type. While household earnings will reach pre-pandemic levels by 2022, the fastest household expenditure…

Sri Lanka ranked low on key business environment indicators in 2020, given a heavy tax burden, burdensome bureaucracy, widespread corruption and skills shortages. Limited access to credit information and high lending rates hinder businesses’ access…

Over the long term, the consumer market in Sri Lanka is forecast to expand at a faster pace compared to regional countries, thanks to economic reforms and a gradual transition towards a more urbanised economy built around manufacturing and services…