Sri Lankan household spending surges 84% as rising prices drive expenditure

By The Pulseline News Desk

Sri Lankan households have recorded a sharp increase in monthly expenditure in early 2025, with average spending climbing to Rs. 116,191, an 84.1% rise from 2019, largely reflecting the impact of higher prices, according to the Department of Census and Statistics (DCS).

The latest preliminary findings of the Household Income and Expenditure Survey (HIES) 2025 has indicated that the increase in household spending has been driven predominantly by inflation, while the growth in actual purchasing power and real consumption expenditure has been considerably more modest.

According to the DCS, average nominal monthly household expenditure has increased from Rs. 63,130 in 2019 to Rs. 116,191 in 2025.

Median monthly household expenditure has also nearly doubled, rising from Rs. 47,544 to Rs. 94,057 over the same period.

However, when adjusted for price changes using 2016 prices, the increase was significantly smaller.

Real average monthly household expenditure has increased to Rs. 63,734 in 2025 from Rs. 55,430 in 2019, while real median expenditure has increased to Rs. 51,593 from Rs. 41,745.

The figures suggest that much of the increase in household spending reflects the higher cost of purchasing goods and services rather than a comparable improvement in household consumption or living standards.

The survey has also revealed considerable differences in expenditure across Sri Lanka’s residential sectors, with urban households recording the highest monthly spending.

Urban households have spent an average of Rs. 158,023 per month, approximately 36% above the national average.

Rural households have recorded average monthly expenditure of Rs. 108,918, while estate-sector households have reported the lowest expenditure at Rs. 88,691.

The sectoral differences have highlighted the varying expenditure patterns and economic conditions across the country, with urban households facing substantially higher overall spending requirements.

The preliminary findings were based on information collected from 25,000 households during the first quarter of 2025. The survey has recorded an average household size of 3.4 persons.

The DCS has categorised household consumption expenditure into 35 subcategories, comprising 19 food groups and 16 non-food groups, providing a breakdown of spending patterns across essential and other household requirements.

The HIES is one of the country’s key statistical exercises for assessing household living conditions, consumption patterns and economic welfare. Its findings also provide an important evidence base for monitoring poverty, evaluating household purchasing power and shaping social protection and economic policy.