In 2025, value sales of meals and cooking supplies are set to see moderate growth, with mixed consumer sentiment affecting the marketplace. For instance, while price sensitivity remained high due to ongoing inflation and cost-of-living pressures, demand for essential categories, such as basic sauces, spices, and edible oils remained steady.

Between 2019 and 2024, Sri Lanka’s economic environment weakened, marked by low rankings in Monetary, Investment and Labour Freedom in the Index of Economic Freedom (IEF), and a heavy tax burden. However, reform momentum is building. FDI inflows are strengthening, labour laws are undergoing major reform, and the Asian Development Bank is financing rural road modernisation. The 2026 budget also prioritises nationwide digital transformation to enhance efficiency and competitiveness.

Sri Lanka’s real GDP grew by 5% in 2024, driven by a rebound in tourism, strong spending and higher investment, surpassing the regional average. However, GDP per capita at USD4,284 lagged behind peers, and growth is set to slow to 3.9% in 2025. While fiscal discipline improved with notable progress on debt restructuring, challenges remain, underscoring the need for diversification, productivity gains and inclusive growth.

Value sales of consumer health in Sri Lanka increased in 2025, supported by rising health awareness, a growing culture of self-medication, and an expanding preference for preventive care among Sri Lankan consumers. Demand strengthened across key categories such as vitamins, dietary supplements, and herbal and traditional remedies, as households continued to focus on immune support and everyday wellness.

In 2024, couples with children were the most common household type in Sri Lanka, reflecting traditional family values, though a shift towards smaller family sizes and delayed family formation is evident, due to urbanisation and improved education and healthcare. Over 2024-2029, the number of households is forecast to grow by 9.4%, with single person households rising the fastest. Despite these changes, couples with children will remain the largest consumer segment, driving demand for family-orie

In 2024, Sri Lanka saw a 3.5% real increase in per capita disposable income, driven by economic growth and lower unemployment. However, income inequality and poverty remain significant issues, with the top 10% of households earning 21 times more than the bottom 10%. Despite these challenges, the consumer market is forecast to grow by 24.4% in real terms by the forecast period, with transport expenditure leading the way.

The dairy products and alternatives market in Sri Lanka is set to grow moderately in 2025 as a result of changing consumer lifestyles and growing health consciousness. While demand is being dampened by concerns about affordability. raised demand for functional benefits, such as lactose-free and high-protein alternatives, has helped traditional dairy products to see growth, while snacking occasions have raised sales of convenient formats, such as drinkable yoghurt. In the meantime, the market for

Value sales of snacks in Sri Lanka rose in 2025. Lifestyle changes, product format innovation, and increased consumer interest in both decadent and practical snacking all contributed to the snacks market's overall performance. Global brands entering new countries and emerging markets demonstrated increased demand for easily accessible, delicious, and convenient snack options, providing significant momentum.

Total volume sales of alcoholic drinks in Sri Lanka saw double-digit growth in 2024, while total current value sales increased dynamically.

Tobacco volume sales returned to growth in Sri Lanka in 2024 after a significant decline in the previous year. Value sales rose significantly faster than volumes during 2024 as a result of the government's more aggressive tax policies, which have increased costs and decreased demand. Ceylon Tobacco Company (CTC) continues to hold monopoly status in the market, with the John Player Gold Leaf brand dominating. The illegal trade, primarily suitcase cigarettes, and the unregulated beedi sector, whic

Sales of beauty and personal care declined in 2024. This decline was primarily due to a reduction in consumption as households were faced with a rise in living costs and a sharp rise in prices, with Sri Lanka continuing to experience elevated inflation. As well as economic considerations, the market in Sri Lanka is also being shaped by a combination of changing consumer preferences and growing awareness of personal health and wellness.

The population of Sri Lanka is predicted to increase due to changes in net migration and natural change, standing at a total of 24.5 million citizens by 2040. By 2040, the most people will be middle-aged (aged 45-64). Generational cohorts will continue to influence consumer expenditure based on their specific purchasing habits and unique demands. Major cities will continue to develop and expand as more consumers settle here, while Colombo will remain the largest city by 2040.

Tissue and hygiene in Sri Lanka grew steadily in 2024 despite inflationary pressures and macroeconomic challenges. Sales of tissue and hygiene products increased both in value terms and volume terms, supported by innovation, urban consumer demand, and the recovery of institutional and away-from-home channels. However, higher production costs, driven by increased raw material prices, contributed to rising retail prices, which in turn dampened demand in more price-sensitive groups. Premium and eco

Home care in Sri Lanka evolved in 2024. Economic trends and health and hygiene awareness shaped demand. Overall, retail volume sales rebounded, as the average retail current unit price decreased, after hikes in 2022 and 2023. As inflationary pressure fell sharply, players lowered or slowed price increases to pique the interest of consumers. While price and essentials were the key factors for many consumers, some traded-up to products offered in modern formats, such as liquid, gel and electric.

This report covers the retail sector in South Asia. Euromonitor International’s definition of the region includes the following countries: Bangladesh, Pakistan and Sri Lanka.

Economic freedom is repressed and corruption is endemic, whilst state finances remain weak. Although deflation has taken some pressure off households, recession continued in 2023, but tourism could be supportive. Population expansion will boost the consumer market and discretionary spending could rise, but inequality is widening and higher educational attainment is very low. Mobile use is growing and prospects are bright for some technology sub-sectors, but 5G rollout has faced further delays.

Hot drinks saw strong growth in Sri Lanka in 2024 backed by an improving economy and a large influx of tourists. The search for convenience boosted sales of tea bags and instant coffee, while an increasing number of consumers looked for healthier hot drinks such as products with functional claims. The competitive landscape has been influenced by fluctuations in the cost of raw materials alongside an improvement in the economy, as well as an increasing focus on healthy and sustainable products.

Sales of soft drinks saw strong growth in off-trade volume terms in 2024 thanks in part to improvements in the local economy. Consumers are showing an increasing inclination towards healthier options – such as reduced sugar and functional products. Larger companies expanded their product lines to include natural ingredients, while smaller companies focused on sustainability and eco-friendly packaging. The ongoing expansion of e-commerce can be attributed to the growing desire for convenience.

In 2024, staple foods in Sri Lanka saw shifts in consumer behaviour due to economic factors like inflation and political unrest. These pressures pushed consumers towards cost-effective choices, such as bulk buying and private label brands, boosting supermarket sales with aggressive pricing. As inflation eased, consumer activity rebounded, leading to increased demand for staples and more frequent shopping, highlighting the influence of price and economic conditions on consumer preferences.

The commodities country overview provides comprehensive data on production, consumption and price trends on key commodities markets. The commodities overview in Sri Lanka covers production and consumption trends in agricultural commodities, energy products, electricity, metal products as well as an overview of key economic and business environment trends.

Asia Pacific remained the largest global producer of food, beverages and tobacco in 2021, with sales valued at USD3,809 billion. With the release of pent-up demand, the industry’s turnover witnessed an increase in 2021. Going forward, expanding domestic markets and rising productivity are expected to stimulate the industry’s growth. However, with tightening global food supplies amid climate change and geopolitical conflicts, challenges persist, especially for major regional food importers.

With a turnover of USD365.8 billion in 2021, Asia Pacific was the world’s second largest region for recreation, entertainment and arts. Over the next decade, the region’s entertainment industry is poised to grow at the fastest rate, nearly closing the gap with Western European turnover levels by 2030. Recovering tourism, growing investments and economic expansion are set to drive the entertainment industry’s growth in Asia Pacific, with China remaining in the lead.