📉 0.4 Mn Households Slip Out of Sri Lanka's Middle Class Since 2020: BCG

A new report by Boston Consulting Group (BCG) and The Ceylon Chamber of Commerce reveals a widening income divide, with 0.4 million households slipping into lower-income segments despite nominal income growth. • Overall Income & Household Figures - Total households expanded from 5.7 Mn (2020) to 6.7 Mn (2026). - Average monthly household income rose nominally from Rs. 67,000 to Rs. 109,000. - ~0.4 Mn households moved from the 'Emerging' middle-income segment into lower 'Aspirer' and 'Struggler' (< Rs. 40,000/month) categories. • Spending Patterns & Sector Impacts - Lower-income households spend up to 71% of total income on essentials. - Housing & Utilities rose to 22% of total household spending (up from 21% in 2020). - Education allocation fell to 7% (down from 8% in 2020). - 77% of all consumers plan to increase spending in the next 6 months, led by resilient affluent segments. • Regional & Digital Disparities - Urban West holds 2x as many affluent households as rural areas; rural regions account for 56% of middle-class households. - Banking & Financial Services: Credit card usage stands at 19% overall, reaching 33% among 'Established+' households (> Rs. 150,000/month). Digital banking usage is 6x higher in affluent groups (47%) vs. low-income groups (8%). - ICT & Digital Adoption: GenAI awareness is 71% among affluent consumers (29% active usage) vs. 55% overall (18% active usage).