Lanka’s economy grows 4.2% in second quarter

Sri Lanka’s economy expanded by 4.2% in the second quarter of 2026, with industrial and services activities recording growth while agricultural activity contracted, according to the Department of Census and Statistics (DCS).

The estimated Gross Domestic Product (GDP) at constant 2015 prices increased to Rs. 3,029,816 million in the April to June quarter of 2026, from Rs. 2,908,570 million recorded in the corresponding quarter of 2025.

The 4.2% growth was supported primarily by the industrial sector, which expanded by 7.3% during the quarter. Services activities also recorded growth of 2.7%, while agricultural activities contracted by 2.3%.

The latest figures indicate that industrial activity remained the strongest contributor to economic expansion during the quarter, while the services sector continued to record moderate growth.

Agriculture, meanwhile, remained under pressure, with the sector recording a contraction compared with the corresponding period of the previous year.

The DCS released the second quarter GDP estimates based on the production approach, together with other key macroeconomic indicators.

Accordingly, Sri Lanka’s GDP at constant 2015 prices increased to Rs. 3,029,816 million in the second quarter of 2026, from Rs. 2,908,570 million recorded in the corresponding quarter of 2025.