• Political, fiscal stability post-polls boost consumer confidence  
• Increased tourist arrivals, low inflation drive optimism among local retailers 
• Food sector sees robust growth in 2024; consumer durables market still struggles  

Local retailers are anticipating a strong winter season due to improved customer confidence amidst improved economic conditions and political stability that have been achieved in the aftermath of the recent elections.

Speaking to The Sunday Morning Business, Sri Lanka Retailers’ Association (SLRA) President Charitha Subasinghe pointed out that the political stability achieved in the aftermath of the recent elections, coupled with the fiscal stability and low inflation achieved by the country, had led to improved customer confidence across all metrics.

Accordingly, he stated that considering these developments and increased tourist arrivals, local retailers were expecting the retail market to be very active during the upcoming season.

He added: “There should be a lot more activity this year compared to what we have experienced over the last three to four years. That is what we project.”

However, he cautioned that it would be premature to expect the retail market to return to what it had been in 2018, prior to the devastation caused to the economy by the 2019 Easter Sunday attacks, Covid-19 pandemic, and 2022 economic crisis. 

He further pointed out that the high inflation the country had experienced with the deterioration of economic conditions had severely curtailed the disposable income of consumers.

Commenting further on the performance of the retail market in 2024, Subasinghe stated that the food sector in particular had performed remarkably well. 

According to him, this improved performance is expressly reflected in the quarterly financials of Ceylon Cold Stores, Cargills (Ceylon), and Richard Pieris & Company, which have experienced a Year-on-Year (YoY) growth in the high single digits.

However, Subasinghe stated that despite the recovery experienced by the retail market this year, the consumer durables sector, in particular white goods and clothing, was still lagging behind due to the low disposable income of households. He expressed his belief that economic conditions would have to improve further before the consumer durables sector started moving.