Sri Lanka’s Consumer Sentiment Index (CSI) fell sharply in March, declining 16 points to 70 — the lowest reading since June 2024 and the steepest month-on-month drop since January 2021, according to Prosoft Research and Insights.
The latest reading still sits above the historic low of 56 recorded in June 2022 at the depth of the economic crisis, but the speed of the March fall signals a deterioration in confidence after early signs of volatility in February.
Prosoft attributed the slide to mounting pressure on households from rising living costs, energy-related concerns and heightened uncertainty in global markets linked to the ongoing Middle East conflict. Survey respondents indicated a broadly negative outlook, with a majority expecting both their household financial situation and overall economic conditions to worsen over the next 12 months.
The research firm cited multiple contributing factors: the rising cost of living, concerns over fuel and energy availability, the risk of electricity and water disruptions amid prevailing heatwave conditions, and the impact of trade union action — including the Government Medical Officers’ Association strike.
While current sentiment levels are comparable to those seen in mid-2024, Prosoft said the pace of decline within a single month “suggests increased fragility in consumer confidence.” It added that businesses and policymakers will need to assess whether the downturn represents a temporary reaction to current pressures or the beginning of a more sustained shift in consumer behaviour.
The Consumer Sentiment Survey is conducted monthly by Prosoft Research and Insights based on a sample of 200 respondents.
The reading lands amid mixed macro signals: headline inflation accelerated to 5.4% in April, the CSE posted a +7% gain in April, and the Q1 current account remained in surplus on remittances and tourism — even as households reported worsening expectations.
Source: Consumer sentiment drops to lowest since June 2024 — Daily FT, May 1.
