Business

‘Sri Lanka’s household consumption has recovered, but the consumer has changed’

Published

1 week ago

2026/10/9

(From left to right): Anshuman Upadhyaya, Managing Director & Partner, BCG; Nishant Gupta, Managing Director & Senior Partner, BCG; Parul Bajaj, India Leader – Marketing, Sales & Pricing and Managing Director & Partner, BCG; and Devraj Bharati, Associate Director, BCG

Boston Consulting Group (BCG) released a report, “The Changing Path to Purchase in Sri Lanka,” in collaboration with The Ceylon Chamber of Commerce. It examines how Sri Lanka discovers, selects and transacts in a recovering economy. Six years on from BCG’s first study of the Sri Lankan consumer in 2020, the report set out to establish where that consumer now stands.

Sri Lanka has gone through a period of sustained economic pressure, and household consumption has recovered to a record level. The crisis, however, redrew where spending power sits and how families allocate what they have. It prompted shifts in consumer behaviour, some of which persist even after conditions have eased.

Key findings from the report

Rural Sri Lanka carries the middle-class scale, affluent households spend above their weight: Household consumption stands at a record level of around LKR 9 trillion in real terms and remains the largest component of GDP. The middle class is the largest consumption pool at about 70% of national spending, with rural Sri Lanka accounting for 56% of middle-class households. Affluent households are increasingly concentrated in the Urban-West and account for 4% of all households, while contributing 11% of national consumption.

Choices are more intentional and preference must be re-earned: More brands enter the consideration set than in 2020, yet fewer convert into a single preferred brand. Incumbent channels lag on some key choice drivers, giving newer channels a right to win.

Spending intent runs ahead of income: 77% of consumers expect to spend more over the next six months, while 38% expect their income to rise. Consumers expect to spend more on essentials, hold everyday categories and cut back or defer discretionary purchases in the shorter term.

Discovery remains human-led, while the shortlist digitises: Word of mouth is still the strongest source of influence at 66%, while digital influence has risen to 51% from 32% in 2020, running highest in considered purchases like leisure and high-value purchases. Within digital, YouTube and social media lead discovery.

Generative AI is emerging as the next discovery frontier: 55% of consumers are aware of it and 18% have already used it, with about one in three using it to research brands and products.

Digital banking sees deep engagement: 25% of consumers use digital banking, but they are highly engaged. Digital payments are their preferred choice for routine transactions.

“Consumption has recovered to a record level, but the household behind that number is not the one companies planned for before the crisis. Essentials take a larger share of the wallet, and families are making more deliberate choices, category by category,” said Nishant Gupta, Managing Director & Senior Partner, BCG.

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Business

Samagi Spice Exports to launch Ceylon Cinnamon based beverage range

Published

8 hours ago

2026/10/16

Priyan

The SPICEUP range of Cinnamon based beverages being launched by Samagi

Samagi Spice Exports (Pvt) Ltd is set to introduce SPICEUP, a new Sri Lankan beverage brand, at its grand launch on Saturday 17 October 2026 at the University of Ruhuna, Matara.

With a history dating back to 1969, Samagi Spice is taking a new step in its business journey by expanding beyond traditional spice exports into value added consumer products.

Through SPICEUP, the company aims to connect Sri Lanka’s internationally recognized cinnamon heritage with contemporary beverage innovation, creating a distinctive identity in the country’s beverage market.

The SPICEUP range will feature a variety of products, including Original, Cream Soda, Power, GO, Cool, Burn, Memo+ and Zingy. Designed to offer consumers a range of refreshment experiences, the products will be available in two packaging formats: cans and plastic bottles, catering to different consumer preferences and occasions.

At the heart of the initiative is the potential of true Ceylon cinnamon as a value-added ingredient in the beverage industry. Rather than limiting cinnamon to its traditional uses, SPICEUP seeks to explore new opportunities for bringing this iconic Sri Lankan spice into everyday consumer experiences.

The initiative also highlights the broader potential of transforming the country’s agricultural resources into innovative products with commercial value.

The launch ceremony will be attended by legendary Sri Lankan cricketer Sanath Jayasuriya as the Chief Guest, alongside representatives from the Export Development Board (EDB), Industrial Development Board (IDB), Cinnamon Research Academy and other industry stakeholders.

A major highlight of the occasion will be the official unveiling of the SPICEUP product range, followed by the launch of the brand’s official website. The event will also feature the signing of a Memorandum of Understanding (MoU) between Samagi Spice Exports and the University of Ruhuna, marking an important step towards strengthening collaboration between industry and academia.

The proposed collaboration will provide a platform for future research, product innovation and value addition involving true Ceylon cinnamon. By bringing together business expertise and university-based knowledge, the initiative aims to support the development of innovative, value-added products and contribute to Sri Lanka’s potential in international markets.

With its roots in the country’s spice industry and its ambitions in the beverage sector, SPICEUP is poised to begin a new chapter in Samagi Spice’s journey—one that seeks to bring the distinctive identity of Ceylon cinnamon to a new generation of consumers.

Business

Indian business leader urges SL entrepreneurs to tap into India’s rapidly expanding consumer market

Published

23 hours ago

2026/10/16

Thilina Walpola

T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL)

By Sanath Nanayakkare

Speaking at the Sri Lanka Economic and Investment Summit 2026, T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL), emphasised that local enterprises can unlock substantial economic benefits by strategically aligning with India’s booming consumer base.

Addressing business leaders and policymakers at the Shangri-La Hotel in Colombo, Krishnakumar highlighted that geographical proximity and rich cultural ties provide a natural foundation for deeper commercial collaboration.

He noted that instead of viewing bilateral trade narrowly, regional partnerships should act as conduits to build robust, scalable enterprises capable of plugging into wide-reaching regional value chains.

“For Sri Lankan exporters dealing in traditional staples as well as value-added goods, accessing India’s rising middle class presents a phenomenal growth window,” he said.

Drawing insights from Reliance Consumer Products’ rapid expansion – which scaled efficiently to thousands of employees and multi-billion-dollar metrics – Krishnakumar stressed that modern corporate success relies on disciplined execution, localised consumer understanding, and smart technology integration.

Furthermore, he underscored that while rapid growth is critical, businesses must consistently anchor their models in affordability and consumer trust.

Concluding his address at the summit, the RCPL chief noted that pairing regional trade integration with resilient business practices and predictable regulatory frameworks will be vital as Sri Lanka transitions firmly toward accelerated economic development.

Addressing the Summit during a subsequent fireside chat, President Anura Kumara Dissanayake underscored that a core concern currently being targeted by the government is developing a critical mass of local entrepreneurs equipped to engage with international enterprise counterparts.

Business

SriLankan Airlines wins prestigious SATA 2026 Visitors’ Choice Award for Leading International Airline

Published

24 hours ago

2026/10/16

Thilina Walpola

SriLankan Airlines has once again been honoured with the prestigious Visitors’ Choice Award for Leading International Airline at the South Asian Travel Awards (SATA) 2026, reaffirming its continued recognition in the regional travel and tourism industry. The airline, which has received this award in previous years, was the only international airline to be recognised in this category at this year’s event. The 10th anniversary edition of the awards ceremony was held earlier this month at Hotel Barcelo Nasandhura in Male, Maldives.

Recognised as one of the key events on the Maldivian tourism and travel industry calendar, SATA celebrated its 10th anniversary on a grand scale, bringing together prominent industry stakeholders, including Government Ministers, distinguished dignitaries, diplomats and senior representatives from leading airlines and their respective head offices.

Commenting on the achievement, Dimuthu Tennakoon, Head of Commercial, SriLankan Airlines, stated, “We are honoured to receive this recognition at the South Asian Travel Awards 2026. Being named the Leading International Airline in the Visitors’ Choice Awards once again is a meaningful acknowledgement of our commitment to serving our passengers and strengthening our presence in the region. This award inspires us to continue enhancing the travel experience we offer and to build stronger connections with the markets and communities we serve.”

Complementing its commitment to service excellence, SriLankan Airlines offers an extensive flight network with convenient connections to destinations across the globe. In South Asia, the airline operates nearly 130 flights each week to 15 destinations across India, Pakistan, the Maldives, Nepal, and Bangladesh. With schedules thoughtfully designed to suit the needs of travellers, SriLankan Airlines provides seamless connectivity for those visiting Colombo for business or leisure, as well as passengers travelling onwards to destinations worldwide.