Though Sri Lanka’s overall retail and consumer sector saw a 405% year-on-year growth in earnings in March 2026, the food, beverage and tobacco sector’s earnings experienced both a year-on-year and quarterly decline, with the food and staples retail sector seeing a moderate recovery, First Capital Research’s sector report for March said.

The research unit, in its report released on Monday (22), found that though the overall retail and consumer sector saw a 405% year-on-year growth in March and 62% quarterly growth, Sri Lanka’s food, beverage and tobacco sector posted a 74% year-on-year decline in earnings and a 55% quarterly decline in earnings, while the food and staples retail sector saw a 22% year-on-year growth.

In the banking and financial sector, Sri Lanka’s banks reported Rs 47.3 billion (b) in earnings for March 2026, posting a 3% year-on-year growth. The banking sector was the single largest earnings contributor in the market, accounting for over 25% of total market earnings.

In diversified financials, the sector reported Rs 34.9 b in earnings, remaining a cornerstone of market performance despite a marginal 5% year-on-year decline.

Both the capital goods and real estate sectors saw cyclical growth. Earnings grew by 52% quarter-on-quarter to reach Rs 32.1 b in the capital goods sector, while the real estate sector saw earnings jump 133% year-on-year to Rs 6.72 b.

Meanwhile, the telecommunications sector posted a 100% year-on-year growth, while the healthcare sector posted a 161% year-on-year growth, the research unit’s findings show.

Among other underperforming sectors, consumer services contracted by 10% year-on-year, the energy sector declined by 23% year-on-year, and commercial and professional services recorded a significant loss of Rs 668 million.