Dinesh Fernando, President of the All Ceylon Fireworks Manufacturers Association, has reported a remarkable increase in the sales of firecrackers during this Sinhala and Tamil New Year, defying expectations amidst a broader slowdown in consumer spending.
Fernando noted that while sales of most consumer goods remained subdued, the demand for firecrackers, including traditional favorites, has seen a notable upswing.
The unexpected surge in sales, according to Fernando, can be attributed to several factors. Firstly, the release of firecrackers manufactured over the past two years at discounted prices, coupled with reduced production costs in the current year due to lower prices of key raw materials such as potassium nitrate and aluminum powder, contributed to the favorable market conditions.
Anticipating a decline in demand due to prevailing economic conditions, manufacturers initially priced their products lower. However, contrary to expectations, consumers demonstrated strong interest, resulting in robust sales figures.
Despite offering firecrackers at reduced prices, Fernando highlighted reports indicating that vendors are selling them at prices comparable to previous years, suggesting healthy margins for both manufacturers and sellers.
