Sri Lanka’s consumer confidence hits new high in October

• IHP survey reveals consumer confidence has reached highest since 2022
• Index of Consumer Expectations increased to 45, Index of Current Conditions rose to 33 points and Index of Consumer Sentiment expanded to 40 points
• However, public views on current buying conditions remained relatively unchanged

Sri Lanka’s consumer confidence reached a new high in October, the highest since 2022, as sentiment continued to improve, following the presidential election. 

The election marked a historic moment, with the appointment of a president from outside the political establishment for the first time since independence, according to a survey by the Institute for Health Policy (IHP).

In October, all three of the IHP’s Consumer Confidence indices increased, reaching their highest levels since tracking began in 2022. Compared to the previous month, the Index of Consumer Sentiment (ICS) – the broadest measure of public views on personal economic status and national economy – rose by eight points to 40.

The Index of Consumer Expectations (ICE), which tracks future perceptions, increased by nine points to 45. The Index of Current Conditions (ICC), a measure of perceptions of the current conditions, rose by five points to 33.

During the month, the perceptions of the country’s long-term prospects over the next five years improved significantly, with the relevant index rising by 14 points to 49. However, the public views on the current buying conditions saw only a marginal increase, with the index rising by one point to 32.

“The increases in the ICS and ICE were driven by improved perceptions of both personal financial situations and the country’s financial situation in the short and long term. However, the public views on the current buying conditions remained relatively unchanged,” the IHP noted.

The IHP’s consumer confidence indices range from zero to a potential maximum of 100, with levels below 50 indicating net pessimism. 

These indices use methodologies commonly employed in the United States and Europe, with the data collected through telephone interviews. 

The estimates are based on 21,234 interviews conducted between October 21, 2021 and November 07, 2024, including 761 interviews conducted in October 2024. The sample sizes vary between the indices, based on the response rates, with the responses weighted to match the national population.