Sri Lanka has been ranked as the second most expensive country in South Asia to live in, with an individual needing $506 (Rs. 153,899) per month excluding rent to maintain a comfortable lifestyle, according to Numbeo’s 2024 global cost-of-living index.
The world’s largest user-generated cost-of-living database, Numbeo, has placed Sri Lanka just behind the Maldives, which tops the South Asian Association for Regional Cooperation (SAARC) region with a cost of $840.4 per person per month. For a family of four living in Colombo, Numbeo estimates monthly expenses of around Rs. 570,997 excluding rent — covering food, childcare, education, transport, and entertainment.
These findings highlight the increasing financial strain faced by Sri Lankan households. Rising taxes, inflation, and the continued depreciation of the rupee have significantly pushed up daily living costs. Many middle-class families now struggle to meet basic needs despite wage adjustments in some sectors.
The Central Bank of Sri Lanka’s Annual Economic Review 2024 reports that average monthly household expenditure climbed 1.6 percent — from Rs. 103,383 in 2023 to Rs. 105,063 in 2024 — showing a slowdown compared with the 74.9 percent increase recorded in 2022 and the 16.5 percent rise in 2023. However, this moderation still reflects a high-cost environment that leaves many citizens turning to coping mechanisms such as cutting food intake, reducing travel, or withdrawing children from extracurricular activities.
Price hikes in essential commodities remain a major contributor. Central Bank data from September 2024 to September 2025 reveal that the average price of nine commonly consumed vegetables increased by 42.7 percent — from Rs. 225 per kilogram to Rs. 321.10. Transport, dining out, and utility costs have also risen sharply, especially in urban areas like Colombo and Kandy.
Economists note that although inflation has eased from its 2022 peak, the overall cost of living remains high relative to income levels. The Numbeo ranking underlines how economic recovery remains uneven, with citizens feeling the squeeze despite macro-stability signals.
For many Sri Lankans, the struggle to maintain a “comfortable life” is no longer about luxury — it’s about survival in one of South Asia’s most expensive nations.
A timely article.