By Lughadarini Yogaraja 

Your favourite Sri Lankan creator has just posted a reel from her tuk ride through Colombo, the camera pans to her glossy red lipstick catching the morning light, matched perfectly with a thrifted linen kurta. Tempting, right?

We’ve all paused mid-scroll, hovering over the add to cart button, convincing ourselves that a new lipstick shade, a coffee, or a brunch at the new café is self-care, not spending. If you’ve ever justified that little indulgence when everything else felt heavy, congratulations, you’ve just lived the Lipstick Effect.

Before you dismiss it as vanity, let’s pause for a reality check. Is it really about the lipstick or about survival in uncertain times?

What Is the Lipstick Effect?
The term “Lipstick Effect” first appeared in Western economic studies, but its essence feels deeply Sri Lankan. It refers to a rise in small luxury spending, like cosmetics, during economic downturns. Leonard Lauder of Estée Lauder coined it in the early 2000s when he noticed lipstick sales rising even as global markets crashed. It captured a simple but powerful truth - when people can’t afford big luxuries, they turn to small ones to lift their spirits.

Here at home, we saw our own version of it during Sri Lanka’s economic crisis. As shelves emptied and inflation soared, one thing stood strong: the beauty aisle. Pharmacies and Instagram-based beauty pages flourished. Lip tints sold out, homegrown brands like The Beauty Counter thrived, and “treat yourself” reels replaced travel posts.

In short, when the world felt unstable, women reached for colour.

Lipstick and Emotional Survival

To the untrained eye, buying a lipstick in the middle of a crisis may look frivolous. But psychologists argue it’s a powerful emotional coping mechanism.

Retail therapy, particularly for affordable items, activates our brain’s reward system, releasing dopamine and giving us a sense of control. When the economy, politics, or power cuts leave you feeling powerless, something as small as a Rs. 2,000 lipstick or a Rs. 800 latte can say, I choose this.

This isn’t about superficiality, it’s about agency. A small indulgence provides comfort, normalcy, and sometimes, even hope.

Research in behavioural economics shows that people derive more satisfaction from affordable pleasures than expensive ones. A candle, a bath bomb, or a lipstick can produce genuine joy, the kind that a luxury handbag might not. In Sri Lanka, where everyday life can feel like a constant negotiation between uncertainty and endurance, that’s no small thing.

Why Women Spend (and Why It’s Not Silly)

Globally and locally, women’s spending is often labeled impulsive or unnecessary, while men’s indulgences think gadgets or tech  are seen as practical or “investments.” But emotional spending isn’t irrational. It’s adaptive. Women are managing economic stress, social pressure, and often, caregiving roles and small luxuries help them recharge.

A 2023 consumer report in Asia showed a rise in beauty and wellness purchases even as essential spending dropped. Sri Lankan women echoed that sentiment: “If I can’t travel or buy new clothes, at least I can buy lipstick,” one influencer wrote in a viral tweet.

These are not careless acts of consumerism; they are quiet assertions of resilience.

Sri Lanka’s Lipstick Economy

Beyond psychology, the Lipstick Effect tells a deeper economic story. When big-ticket dreams, a car, a home, a degree abroad, feel out of reach, small luxuries become investments in emotional survival.
Colombo’s boutique beauty scene and skincare startups are thriving precisely because they cater to that mindset: comfort that doesn’t break the bank. In 2024, several local brands reported rising sales of affordable “feel-good” products nail polish, scented candles, and organic soaps, despite overall consumer spending dips.

It’s a small but powerful shift: resilience expressed through colour, scent, and self-care.

A Swipe of Resilience
The Lipstick Effect isn’t just about vanity; it’s about vitality. It’s what keeps women showing up to work, to classes, to life, even when the country’s headlines scream uncertainty. It’s the psychological armour of a generation that refuses to look defeated, even when the economy says otherwise.

So next time you see someone swatching a bold new shade at ODEL or sipping an overpriced latte on a budget, think again.