📈 Sri Lanka Consumer Spending Rebounds, Shifts Toward Essentials: BCG Report

• Macro Recovery: Real household consumption rebounded from Rs. 8.0 Tn (2023) to a record Rs. 8.9 Tn (2025), after dropping from Rs. 8.2 Tn (2019). Household spending averaged 67% of real GDP over 2023–2025, acting as the nation's primary growth engine. • Outlook & Income Gap: A Boston Consulting Group (BCG) survey of 2,272 local consumers reveals 77% expect household spending to rise over the next 6 months, while only 38% expect higher income. Households earning >Rs. 150,000/month show higher resilience, with cutback/deferral intent ~40% below national average. • Sector & Wallet Allocation: • Essentials: 57% expect higher spending on staples and personal care. • Semi-Discretionary: 46% plan to maintain spend on apparel & footwear (clothing) and packaged foods. • Occasional Purchases: 37% intend to cut back on travel and home improvement. • High-Ticket Discretionary: 38% plan to defer purchases of vehicles and large appliances.