Sri Lanka’s consumer confidence reaches a new peak in March

Sri Lanka’s consumer confidence soared to unprecedented heights in March but a late-month dip has analysts on edge, according to a report from the Institute for Health Policy (IHP).
“Indices have been improving since the start of this year, so the general trend has been up. However, the late March data suggest a fall but this will need to be confirmed in the April data, before drawing conclusions,” the IHP said.
The IHP’s Consumer Confidence indices, derived from its Sri Lanka Opinion Tracker Survey, all hit new peaks in March, showcasing a promising start to the year. The index of Consumer Sentiment, the broadest measure of the public’s view of their personal economic status and the national economy, gained nine points to 31 points. The index of Consumer Expectations, which tracks future perceptions, increased nine points to 37 points. The index of Current Conditions, a measure of perceptions of current conditions, also increased nine points to 22 points.
The earlier peak was recorded in July last year, after the country secured the International Monetary Fund funding support.  However, Sri Lanka’s consumer confidence continues to remain at net pessimistic levels. The IHP consumer confidence indices range from zero to a potential maximum of 100, with levels below 50 indicating net pessimism.
Meanwhile, indicating a recovery in public expectations of the country’s situations, the index of Personal Financial Situation (next 12 months) rose by nine points to 38 points, while the index of Country Situation (next 12 months) increased by seven points to 33 points. 

Similarly, the index of Country Long-Term Prospects (next five years) gained 10 points to reach 40 points in the month. The IHP follows the same methodology commonly used in the United States and Europe, with data collected by telephone interviews. The estimates are based on 15,924 interviews conducted between October 21, 2021 and April 7, 2024, including 528 interviews conducted in March 2024, with sample sizes varying between the indices, depending on the response rates and responses weighted to match the national population. (NF)