Economy English

Sri Lanka's Economy Grows 4.2% in Second Quarter as Agriculture Contracts

Sri Lanka's real gross domestic product grew 4.2% year-on-year during the second quarter of 2026, according to provisional estimates released by the Department of Census and Statistics.

The latest figure shows that the economy continued to expand during April-June, although the pace of growth was lower than the 5.1% growth recorded in the first quarter of 2026 and the approximately 5.0% growth recorded in the second quarter of 2025.

Performance differed significantly between major sectors.

Industrial activities expanded by approximately 7.3%, while services grew by about 2.7%.

Agricultural activities, however, contracted by approximately 2.3%.

Within industry, construction recorded strong expansion, while mining and quarrying also showed substantial growth.

The official estimates indicate weaker performance in parts of agriculture, including rice-related activity and fishing.

The figures show that Sri Lanka remained in positive year-on-year economic growth during the quarter, but with an uneven pattern across sectors.

A slowing quarterly growth rate does not by itself establish that the economy has entered a recession or that a sustained economic downturn has begun.

Quarterly GDP estimates are also subject to later revision as more complete economic data become available.

Sources

  • Department of Census and Statistics