Consumer confidence in Sri Lanka experienced a slight uptick in February, driven by positive shifts in both public expectations for the country’s future and improving buying conditions. According to data from the Institute for Health Policy (IHP), all three of the Consumer Confidence indices, derived from the Sri Lanka Opinion Tracker Survey (SLOTS), showed improvement during the month.
The Index of Consumer Sentiment (ICS), reflecting views on personal economic status and the national economy, rose by six points to reach 22 points. Similarly, the Index of Consumer Expectations (ICE), gauging future perceptions, increased by seven points to 28 points. The Index of Current Conditions (ICC), measuring current perceptions, also saw a four-point increase to 13 points.
Despite these gains, the IHP cautioned that consumer confidence remains in pessimistic territory overall, with all indices still below the neutral threshold of 50.
Notably, the positive momentum was primarily driven by a resurgence in public expectations for the country’s situation over the next 12 months, with a significant increase of 14 points to reach 26 points. Concurrently, perceptions of current buying conditions improved by seven points to 13 points.
Expectations for the country’s long-term prospects over the next five years also improved, rising by five points to 30 points.
Regarding personal finances, the data showed marginal changes, with the Personal Financial Situation index edging up by one point to 14 points, while expectations for personal financial situations in the next 12 months improved by three points to 29 points.
The Consumer Confidence Index (CCI) estimates were drawn from a comprehensive survey conducted between October 21, 2021, and March 7, 2024, with a sample size of 15,469 interviews, including 579 interviews conducted in February 2024. All estimates were adjusted to be representative of the national population across various demographics.
Funding for the survey was previously provided by organizations such as the Neelan Tiruchelvam Trust, UK National Institute for Health and Care Research, and Asia Foundation in Sri Lanka. The current research is financed by the IHP Public Interest Research Fund and other contributors, as disclosed by the IHP.
