Sri Lanka

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.…

Snacks performed well in 2022 despite the impact of the economic crisis, import restrictions and government policies that are unfavourable to local production in some categories. Profit margins are being squeezed by rising raw material costs and…

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…

Volume sales of cigarettes increased in 2021 after two years of strong declines due to tax increases and the COVID-19 pandemic. This boosted the illicit trade as low-income consumers found smoking increasingly unaffordable. However, demand for…

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…

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…

Alcoholic drinks registered positive growth in 2021 as sales rebounded from the severe declines recorded at the peak of the COVID-19 pandemic in 2020. In particular, on-trade sales slumped in 2020 due to the absence of foreign tourists and an…

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…

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…

Tissue and hygiene saw current value recovery in 2021, following on from the decline seen in 2020 as a result of the COVID-19 pandemic. Higher living costs and a strong tradition for cheaper cloth alternatives however continue to limit usage. In the…

Many products saw sharp sales decline due to the COVID-19 pandemic in 2020, followed by recovery in 2021. However, some products continued to struggle due to economic uncertainty, with consumers limiting purchases to essential items and seeking out…

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…

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…

Despite having low pollution and high water security, Sri Lanka ranks in the middle of Global sustainability ranking due to its poor environmental protection, low climate resilience and poorly-developed energy sector. Moreover, the South Asian…