Sri Lanka's economy grows 5.1 pct in Q1 2026-Xinhua

Sri Lanka's economy grows 5.1 pct in Q1 2026

Source: Xinhua

Editor: huaxia

2026-06-15 21:00:45

COLOMBO, June 15 (Xinhua) -- Sri Lanka's economy expanded by 5.1 percent in the first quarter of 2026, supported by growth in industry, services and agriculture, the Department of Census and Statistics said.

Gross domestic product (GDP) at constant prices rose to 3.65 trillion Sri Lankan rupees (about 11 billion U.S. dollars) during the January-March period this year from 3.47 trillion rupees in the corresponding quarter of 2025, according to the department.

At current prices, GDP increased to 9.16 trillion rupees from 8.25 trillion rupees a year earlier, recording an 11 percent increase.

The department said the economy grew despite the country continuing to recover from the impact of Cyclone Ditwah and facing additional challenges toward the end of the quarter due to tensions in the Gulf region.

Industrial activities recorded the strongest expansion among the main sectors, growing by 7.2 percent in the first quarter. Construction grew by 16.3 percent, while mining and quarrying increased by 19.5 percent. Manufacturing expanded by 2.8 percent, supported by growth in chemical and basic pharmaceutical products, basic metal and fabricated metal products, non-metallic mineral products, wood products, food and beverages, furniture and paper products.

Services activities grew by 3.4 percent, compared with a 2.7 percent increase recorded in the same quarter of 2025. Growth was reported across most service segments, led by insurance, reinsurance and pension funding, which increased by 22 percent, IT programming consultancy and related activities at 16.1 percent, and financial service activities at 12.8 percent. Public administration and defense contracted by 1.2 percent.

Agricultural activities expanded by 1.1 percent, reversing the 1.3 percent decline reported in the first quarter of 2025.

In terms of GDP share, services accounted for 54.2 percent, industry 27.2 percent and agriculture 7.3 percent.