Consumer sentiment drops to lowest since June 2024

Friday, 1 May 2026 09:55 - - {{hitsCtrl.values.hits}}

Prosoft Research and Insights’ Index falls 16 points month-on-month, steepest drop since Jan. 2021
Weak outlook on household finances and economy over next 12 months
Pressures from cost of living, energy concerns and external shocks

Sri Lanka’s Consumer Sentiment Index fell sharply in March, declining by 16 points to 70, marking the lowest level recorded since June 2024 and the steepest month-on-month drop since January 2021.

According to Prosoft Research and Insights, the decline reflects mounting pressure on households amid rising living costs, energy-related concerns and heightened uncertainty in global markets linked to the ongoing Middle East conflict.

The latest reading, while above the historic low of 56 recorded in June 2022, signals a deterioration in consumer confidence following early signs of volatility observed in February.

Respondents indicated a broadly negative outlook, with a majority expecting both their household financial situation and the overall economic conditions in the country to worsen over the next 12 months.

The survey findings point to multiple contributing factors, including the rising cost of living, concerns over fuel and energy availability, the risk of electricity and water disruptions amid prevailing heatwave conditions, and the impact of trade union action, including the Government Medical Officers’ Association (GMOA) strike.

While current sentiment levels are comparable to those seen in mid-2024, the pace of decline within a single month suggests increased fragility in consumer confidence. The report noted that businesses and policymakers will need to assess whether the downturn represents a temporary reaction to current pressures or the beginning of a more sustained shift in consumer behaviour.

The Consumer Sentiment Survey is conducted monthly by Prosoft Research and Insights based on a sample of 200 respondents.