Introduction

Shopping in Sri Lanka has changed a great deal in a few short years. Households that lived through the economic crisis of 2022 learned to budget carefully, compare prices and make every rupee count. Since then, inflation has eased and consumer goods sales have recovered, but many of the habits formed during the hard years have stayed. At the same time, supermarkets are expanding, online grocery has become part of everyday life for many urban families, and new rules on plastic bags and food labelling are changing how shops operate.

For retailers, restaurants and suppliers, understanding these changes is essential. The products, pack sizes, prices and services that worked five years ago may not be what shoppers want today.

As a wholesale supplier of food and non-food brands, including Hakgala tea, Desco coffee, Udari cashews and spices, Hakgala Herbal Cosmetics and Duiker clothing, we watch these trends closely. This article looks at twelve trends shaping Sri Lankan retail in 2026, what each one means for retailers and food service businesses, and how suppliers can help. It ends with practical steps and answers to common questions.

1. Shoppers remain value-conscious

The most important trend is also the simplest: shoppers are careful with money. Recent reports describe households reworking grocery budgets, switching to cheaper alternatives and buying more promotions. One 2026 study reported that essentials take up 58% of household income, leaving little room for unnecessary spending.

Value-conscious does not always mean “cheapest”. Shoppers look for products that feel worth the money: reliable quality, honest pack sizes and clear benefits. Many will stay loyal to a brand they trust, as long as it offers fair value.

What it means for retailers: offer a range of price points, keep popular essentials always in stock and use targeted promotions rather than constant discounting.

How suppliers can help: provide good-value pack sizes, support promotions and keep quality consistent so shoppers trust the product.

2. Pack size is the new price tool

Instead of only cutting prices, brands and retailers are using pack sizes to keep products affordable. Analysts advise brands to protect affordability through pack-size options and value packs. Small packs and single-serve sachets let shoppers buy what they can afford today, while larger value packs reward families who can buy in bulk.

What it means for retailers: stock both small and large packs of fast-moving products, such as tea, coffee and spices. Keep single sachets near the till.

How our brands fit: Desco coffee comes in single sachets, family packs and catering packs. Hakgala tea and Udari spices are available in retail and bulk formats.

3. Modern trade keeps growing

Supermarkets and hypermarkets are still a minority of grocery retail in Sri Lanka, estimated at around 17% nationally, but they are growing. An analysis of listed consumer goods companies and major supermarket chains reported modern trade growth rising from 7% in 2023–24 to 10% in 2024–25. In 2025, a major Sri Lankan conglomerate announced its entry into large-scale supermarket retail with an initial 100 outlets, adding competition to the existing chains.

What it means for retailers: competition for shoppers will rise, especially in towns where new supermarkets open. Small shops can compete on convenience, personal service and local knowledge.

How suppliers can help: supply both modern and traditional trade reliably, with products and pack sizes suited to each.

4. Traditional retail still serves most shoppers

Despite supermarket growth, neighbourhood shops still serve most households, especially outside the cities. They are close to home, open long hours, sell small quantities and know their customers.

What it means for retailers: small shops that keep shelves full, stock what their community wants and offer friendly service remain essential.

How suppliers can help: offer practical order sizes, mixed cartons, regular deliveries and fast replacements. Insights Article 6 explains how we supply small shops.

5. Online grocery is here to stay

Online grocery shopping grew rapidly during the pandemic and the crisis years, and commentators in 2026 describe it as a habit that has stuck. Supermarkets run their own apps and websites, and consumer goods companies are joining online marketplaces. Many local retailers already run loyalty apps or take orders online or through messaging apps.

What it means for retailers: even small shops can take orders by phone or messaging apps, and use social media to show new products and offers.

How suppliers can help: provide good product photos, accurate descriptions and correct barcodes for online listings.

6. The end of free plastic bags

From 1 November 2025, a Consumer Affairs Authority gazette has required traders in Sri Lanka to charge customers for polythene bags with handles, instead of giving them away free. Supermarkets were the first to apply the change, and reports suggest plastic bag use has fallen.

What it means for retailers: shoppers increasingly bring their own bags or buy reusable bags at the till. Selling reusable bags printed with the store’s logo turns a regulation into a branding opportunity.

How our range fits: we supply reusable non-woven bags, plain or printed with a store’s branding.

7. Clearer, stricter food labels

Sri Lanka has updated its food labelling rules under the Food Act No. 26 of 1980, with new Food (Labelling and Advertising) Regulations gazetted in 2026. Reports describe requirements for multilingual product names, ingredients, dates and origin information, and provisions for digital QR codes.

What it means for retailers: check that the packaged foods you stock carry complete, compliant labels. Products with clear labels are easier to sell and safer to stock.

How suppliers can help: keep labels up to date with regulations and provide clear product information. Blog Article 3 explains food labelling and storage for retailers.

8. Health and wellness, with honesty

Many shoppers are paying more attention to health: choosing green tea, herbal products and snacks they see as healthier, such as dry-roasted nuts. At the same time, shoppers are more sceptical of exaggerated claims.

What it means for retailers: make room for healthier choices and herbal products, but avoid repeating claims that sound too good to be true.

How our brands fit: Hakgala green and herbal-style teas, Udari Oven Roasted Cashews (dry-roasted, never fried) and Hakgala Herbal Cosmetics, described by their traditional uses rather than as cures.

9. Convenience matters more than ever

Busy households want food and drink that saves time. Coffee premixes, ready spice blends and products that make home cooking easier continue to sell well.

What it means for retailers and restaurants: convenience products earn their shelf space, and kitchens value ingredients that save preparation time.

How our brands fit: Desco premixes make a consistent cup in seconds, and Udari’s ready blends, such as Roasted Curry Powder, Chicken Masala and Biriyani Masala, save cooks from mixing spices from scratch.

10. Local brands and local stories

Shoppers increasingly value Sri Lankan brands with a clear origin, from Ceylon tea and spices to locally made clothing. A story about where a product comes from, such as tea and coffee from the brand’s own plantations, builds trust.

What it means for retailers: highlight local brands on shelves and in promotions, and tell their story.

How our brands fit: Hakgala tea comes from our own plantations, Desco uses coffee from our own plantations, our cashew plantation supplies the Udari cashew range, and Duiker is our own clothing brand.

11. Festive seasons still drive the biggest sales

Whatever the economic mood, Sri Lankan families still celebrate. The Sinhala and Tamil New Year, Vesak, Ramadan and Eid, Deepavali and Christmas remain the moments when households spend more on special meals, sweets, guests and gifts. Even value-conscious shoppers set aside money for these occasions.

What it means for retailers: festive seasons can deliver a large share of a shop’s yearly sales in a few weeks. Planning stock, displays and promotions early makes the most of them.

How our brands fit: spices, cashews, tea and coffee are festive essentials. Udari Cashew Nuts and spices are central to festive cooking, while Hakgala tea, Desco coffee and Udari Oven Roasted Cashews make welcoming gifts and guest treats.

12. Loyalty programmes and personalised offers

Supermarkets have invested in loyalty programmes and apps that reward regular shoppers and tailor offers to their habits. Speakers at the Sri Lanka Retail Forum 2026 noted that many local retailers already run loyalty apps and online ordering platforms.

What it means for retailers: shoppers are used to being rewarded for loyalty. Small shops can offer their own simple rewards, such as a free item after a number of purchases, or special offers for regular customers.

How suppliers can help: support loyalty promotions with product offers and point-of-sale materials.

What the trends mean for non-food categories

The same forces shape non-food shopping:

• Personal care: value-conscious shoppers still spend on personal care, but they look for products they trust. Herbal and Ayurvedic products appeal to many shoppers, provided they are presented honestly.
• Clothing: shoppers favour durable, good-value basics they can wear often, such as well-made T-shirts.
• Bags: the plastic bag charge has created steady demand for reusable bags, both for shoppers and for businesses that give them away as promotional items.
• Stationery: businesses still need printed bill books, receipts, diaries and calendars, and many prefer suppliers who can design and print in one place.

Insights Article 3 explains our non-food range in detail.

Trends to watch beyond 2026

Some changes are only beginning:

• Digital payments, such as QR code payments, are spreading to smaller shops, making it easier for customers to pay and for shops to manage cash.
• QR codes on packs, allowed under the new labelling rules, may let shoppers scan for more product information.
• Sustainability expectations will rise, with more interest in reusable packaging, less plastic and responsible sourcing.
• Data protection will matter more as Sri Lanka’s Personal Data Protection Act takes full effect, affecting how businesses handle customer information in loyalty programmes and online orders.

Retailers and suppliers who prepare for these changes early will find them easier to manage.

What these trends mean for food service

Restaurants, hotels and cafés face many of the same pressures:

• Cost control: rising costs make consistent ingredients and standard recipes more important.
• Tourism: recovering tourism brings seasonal peaks for hotels and restaurants.
• Convenience: premixes and ready spice blends save time in busy kitchens.
• Allergen awareness: guests increasingly ask about ingredients and allergens, such as nuts.

Insights Article 4 explains how we supply restaurants, hotels and cafés.

The twelve trends at a glance

Practical steps for retailers in 2026

1. Review your pack sizes. Make sure fast sellers are available in both small and larger packs.
2. Protect availability. Empty shelves send value-conscious shoppers elsewhere. Order before stock runs low.
3. Use promotions carefully. Target promotions at key seasons and products rather than discounting everything.
4. Sell reusable bags. Keep them visible at the till, and consider bags printed with your logo.
5. Check labels. Make sure packaged foods carry complete, compliant labels.
6. Make room for healthier choices. Green tea, herbal products and dry-roasted snacks appeal to health-conscious shoppers.
7. Go a little digital. Take orders by phone or message and share offers on social media.
8. Tell local stories. Highlight Sri Lankan brands and where products come from.

Illustrative example

The following example is illustrative and does not describe a real shop.

A mini-market in a growing suburb notices that a new supermarket has opened nearby. Instead of competing on price alone, the owner reviews the shop’s range. Single Desco sachets and small packs of Udari spices are added near the till for daily shoppers, while family packs of Hakgala tea are placed at the front. The shop starts selling reusable bags printed with its name, takes orders by messaging app for regular customers and promotes a “tea time” bundle before New Year. Over the following months, the shop keeps its loyal customers and attracts new ones who value its convenience and friendly service.

Frequently asked questions

Are shoppers in Sri Lanka still cutting back?

Many households remain careful with spending, even as inflation has eased. Value, pack size and trust strongly influence what they buy.

Is online grocery important for small shops?

Not every small shop needs a website, but taking orders by phone or messaging apps and sharing offers on social media can help keep regular customers.

Do shops have to charge for plastic bags?

Since 1 November 2025, traders have been required to charge for polythene bags with handles under a Consumer Affairs Authority gazette. Check the latest rules for details.

What are the fastest-growing product types?

Convenience products, healthier choices and good-value pack sizes are performing well, along with trusted local brands.

How can a supplier help my shop compete?

By supplying reliable products in the right pack sizes, delivering on time, supporting promotions and providing product information and images.

Are festive seasons still important for sales?

Yes. Even value-conscious households spend more on special meals, guests and gifts during New Year, Ramadan and Eid, Deepavali and Christmas. Planning stock early makes the most of these periods.

Do shoppers still prefer local brands?

Many shoppers value Sri Lankan brands with a clear origin and story, especially for tea, spices and other products closely linked to Sri Lanka.

What is the most important trend for small shops?

Availability. Value-conscious shoppers quickly switch to another shop if the products they want are missing, so keeping fast sellers in stock matters most.

Conclusion

Sri Lankan shoppers in 2026 are value-conscious, practical and increasingly digital. They want fair value, convenient products, honest information and brands they trust. Supermarkets are growing, but neighbourhood shops still serve most households, and both need reliable suppliers.

By understanding these trends, and working with suppliers who understand them too, retailers, restaurants and hotels can meet shoppers’ needs and grow.

Want to adapt your range to these trends? Talk to us about our food and non-food brands.

Talk to Our Trade Team

Sources

• Daily Mirror, consumer goods in modern trade record strong growth momentum over three years: https://www.dailymirror.lk/business/Consumer-goods-in-modern-trade-record-strong-growth-momentum-over-3-years/215-335839
• Daily Mirror, as inflation bites, shoppers ditch brands for bargains (2026): https://www.dailymirror.lk/business-main/As-inflation-bites-shoppers-ditch-brands-for-bargains/245-348725
• Colombo Telegraph, Sri Lanka’s click-to-basket moment: why online grocery is sticking (2026): https://www.colombotelegraph.com/index.php/sri-lankas-click-to-basket-moment-why-online-grocery-is-sticking/
• Hayleys, entry into the large-scale supermarket sector (October 2025): https://www.hayleys.com/hayleys-enters-large-scale-supermarket-sector-with-100-outlets-first/
• Ada Derana, fee to be charged for polythene bags with handles (November 2025): https://www.adaderana.lk/news/114166/fee-to-be-charged-for-polythene-bags-with-handles-from-today
• ChemLinked, Sri Lanka Food (Labelling and Advertising) Regulations 2026: https://food.chemlinked.com/news/food-news/sri-lanka-consults-on-draft-food-labelling-and-advertising-regulations-2026
• Supermarket News, evolving FMCG trends in Sri Lanka: https://supermarketnews.co.nz/features/opinion/evolving-fmcg-trends-how-keells-puts-customers-first-in-a-changing-market/
• The Morning, essentials take 58% of household income (October 2026): https://www.themorning.lk/