• Sales volumes remain flat despite higher revenues from price hikes
• 2024 consumption yet to match pre-crisis 2019 levels, say retailers 
• Food and beverage, local tourism sectors expected to see temporary lift
• Households remain cautious despite signs of slow recovery

Retailers claim that they are tempering their expectations in the lead-up to the New Year season, as subdued consumer demand continues to weigh heavily on their expectations. 

Speaking to The Sunday Morning Business, Sri Lanka Retailers’ Association (SLRA) Founder President Hussain Sadique pointed out that even though Sri Lanka had emerged from its economic crisis, consumption in the economy had not grown compared to 2019, prior to the successive disasters that hit the country. 

“We are getting the current sales revenue numbers because of the price increase. The price increase has brought some comfort for us. 

“However, the sales volume has not come from quantities sold. There has been no growth in the quantities sold. Consumption continues to be at a very cautious level,” he stated.

While admitting that consumer demand was slowly improving, he observed that most households continued to be very cautious with their spending.

Nevertheless, he expressed the expectation that the retail food and beverage industry, as well as the transportation and local tourism industries, would see an improved demand over the coming week due to increased internal tourism during the festive season.

Commenting on the brewing global trade war in the aftermath of reciprocal tariffs introduced by US President Donald Trump on 2 April, Sadique stated that in the near term, the impact on local consumers would be low as Sri Lanka imported almost nothing from the US. 

However, he said that the reciprocal tariffs imposed by the US on China could create an opportunity for local consumers to benefit from the now excess supply that China would be looking to divert from the US to alternate markets.

“China’s products, which can’t be exported to America, will now come to other parts of the world. When they export to America, they export for American standards. Such high-standard products will now come to our markets,” he stated.