Sri Lanka Economy Grows 4.2% In Second Quarter

COLOMBO (News 1st): Sri Lanka’s economy has recorded a 4.2 percent year-on-year growth in the second quarter of 2026, marking continued expansion despite challenging global economic conditions.

According to the Department of Census and Statistics, Gross Domestic Product at constant prices increased to 3.029 trillion rupees, up from 2.908 trillion rupees recorded in the corresponding quarter of 2025.

The industrial sector was the main driver of growth, expanding by 7.3 percent during the quarter.

The services sector also recorded positive growth of 2.7 percent, while the agriculture sector contracted by 2.3 percent.

At current prices, GDP increased by 11.3 percent, rising from 7.414 trillion rupees in the second quarter of 2025 to 8.254 trillion rupees this year.

The services sector remained the largest contributor to the economy, accounting for 52.7 percent, followed by the industrial sector at 25.9 percent and agriculture at 8.4 percent.

Deputy Secretary to the Treasury A. K. Seneviratne said the growth was achieved amid the impact of ongoing global conflicts, particularly rising fuel and essential commodity prices.

He said the Government allocated 100 billion rupees from the national budget during the second quarter to cushion the public from these pressures.

The funds were used for fuel and electricity subsidies, as well as support for those engaged in the agriculture and fisheries sectors.

Officials said these measures helped reduce the impact of external pressures while supporting economic activity and sustaining growth.