Business

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

Published

5 days 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

Financial literacy central to country’s development – CBSL Governor

Published

17 hours ago

2026/10/13

Sahan Weerasooriya

Dr. Nandalal Weerasinghe: ‘Financial literacy vital’.

By Hiran H. Senewiratne

Sri Lanka’s financial literacy rate is approximately 58 percent. Such literacy is absolutely necessary for the inclusion of people in the country’s financial system which in turn is central to overall economic development, Central Bank Governor Dr. Nandalal Weerasinghe said.

‘One needs to have knowledge and skills of a financial nature to figure in financial inclusiveness. While 86 percent of Sri Lanka’s population has access to the country’s financial system, 82 percent of the public has at least a savings account in the country’s banking system, Dr Weerasinghe said.

The Governor made these comments recently at the inauguration of Financial Literacy Month 2026 at the Central Bank’s Centre for Banking Studies, Rajagiriya.

Dr. Weerasinghe added: ‘Suitable, affordable and quality financial instruments are needed to enhance financial literacy in the country.

‘Financial information has to be accurate, risk-free and accountable, thus creating confidentiality in the financial system, which would enable the sector to reach greater heights’.

Meanwhile CBSL sources said: ‘The Literacy Month opened with the two-day ‘FinLit Expo Colombo’. The expo gives the public the opportunity to engage with institutions, better understand financial services, gain practical insights into managing their finances and learn how to protect themselves from financial fraud and scams.

‘The CBSL is leading the program in collaboration with stakeholder institutions. It forms part of the Financial Literacy Roadmap for Sri Lanka, which is implemented under the National Financial Inclusion Strategy (NFIS), the national framework for widening access to and use of formal financial services.

‘The Colombo event will be followed by six regional ‘FinLit Expos’ aimed at direct engagement with local communities. Partner institutions will also run awareness activities. Together, the events are intended to provide financial education to communities and encourage people to apply financial knowledge in everyday life.

‘A public awareness campaign on television, radio, newspapers and social media will extend the program’s reach. The program also includes digital financial literacy activities and the promotion of QR codes and other online payment methods.

‘The public and stakeholder institutions are encouraged to take part in the month’s activities under the theme, “Towards a Financially Literate Sri Lanka”.

Business

HUTCH strikes five awards as the only telco honoured at SLIM DIGIS 2.6

Published

17 hours ago

2026/10/13

Sahan Weerasooriya

HUTCH Sri Lanka strengthened its position as a leader in digital engagement by securing five accolades at SLIM Digis 2.6, emerging as one of the most recognized brands at this year’s digital excellence awards. The achievement was further highlighted by HUTCH being the only telecom operator to be recognized at the event.

Organized by the Sri Lanka Institute of Marketing (SLIM), SLIM Digis is Sri Lanka’s premier platform celebrating excellence, innovation, and outstanding achievements in the digital marketing industry. The recognition highlights HUTCH’s growing strength in digital-first, agile, and creative marketing, and its ability to respond to everyday moments, engage audiences, and deliver impactful digital campaigns.

The Gold Award for Best Use of Agile and Moment Marketing, a Silver for Best Use of Digital in a Marketing Campaign, and a Bronze for Best Performance Marketing were all awarded for “Keeping Sri Lanka Connected Through Ditwah,” HUTCH’s response to the cyclone that struck Sri Lanka in November 2025, recognised for the speed and relevance with which HUTCH kept customers better connected and informed.

HUTCH Roaming also earned two further Bronze awards for Best Use of Digital in a Marketing Campaign and Best Use of Creative Content. Bringing together AI-led storytelling, the campaign was designed around distinct customer clusters, each characterized by unique travel behaviours, needs, and perceptions, delivering relevant content for different audiences within a single overarching campaign.

“These wins are a strong reflection of how HUTCH approaches marketing today, staying close to the moments that matter to our customers and responding with speed, relevance, and creativity. Being the only telco recognised at SLIM DIGIS 2.6, and across five categories, is proof that agility and thoughtful storytelling can go hand in hand. This recognition reflects the collective efforts with our strategic partners, whose collaboration, expertise, and shared commitment brought great campaigns to life,” said Hamdhy Hassen, Chief Marketing Officer, HUTCH Sri Lanka.

Business

Fairway Colombo named Official Accommodation Partner of Manhunt International 2026

Published

17 hours ago

2026/10/13

Sahan Weerasooriya

(L-R): Gamunu Cooray, Ms. Tharushi Kulathunga, Avinga Wanigasekara, Arjuna Senanayake, and Jagath De Almeda at the signing ceremony held at Fairway Colombo.

Sri Lanka’s Smart Luxury Business Hotel to Host Delegates and Contestants from Over 40 Countries as the Island Nation Hosts Its First-Ever Global Pageant of This Scale

Fairway Colombo, a subsidiary of Fairway Holdings (Pvt) Ltd, has been appointed as the Official Accommodation Partner for Manhunt International 2026, one of the world’s most prestigious male pageants, scheduled to take place in Sri Lanka.

The event marks a historic milestone for Sri Lanka, as the country prepares to host a global pageant of this scale for the very first time. More than 40 contestants representing countries from across the world will arrive in Colombo, bringing together diverse cultures, international media attention, and a global audience — further strengthening Sri Lanka’s position as a premier destination for tourism, culture, and hospitality.

As the official accommodation partner, Fairway Colombo will welcome and host international delegates and contestants throughout their stay in Colombo, delivering the exceptional hospitality experience and personalized service that the hotel is recognized for.

A Landmark Partnership for Sri Lankan Tourism

“We are truly honored to be selected as the Official Accommodation Partner for Manhunt International 2026. This partnership is a proud moment not only for Fairway Colombo but also for Sri Lanka as a whole. Hosting an event of this global stature provides us with an opportunity to showcase our commitment to smart luxury, innovation, and authentic Sri Lankan hospitality to an international audience. We look forward to creating a memorable and seamless experience for all delegates and guests,” said Avinga Wanigasekara, General Manager of Fairway Colombo.

Strategically located in the heart of Colombo’s historic Fort district, Fairway Colombo is recognized as a Smart Luxury Business Hotel, combining modern comfort, advanced technology, and exceptional service. As part of Fairway Holdings (Pvt) Ltd, the property represents the group’s vision of delivering innovative, world-class experiences across the hospitality and leisure sectors.