COLOMBO, Sept. 16 (Xinhua) -- Sri Lanka's economy grew 4.2 percent year-on-year in the second quarter of 2026, supported by strong industrial activity despite a contraction in agriculture, according to official data released by the country's Department of Census and Statistics on Tuesday.
Gross domestic product at current prices rose 11.3 percent to 8.25 trillion rupees (about 25.09 billion U.S. dollars), from 7.41 trillion rupees in the corresponding quarter of 2025.
Industry recorded the strongest performance among the three main sectors, expanding 7.3 percent compared with 5.7 percent growth in the corresponding quarter of 2025.
Construction grew 13.9 percent, while mining and quarrying expanded 17.4 percent. Manufacturing increased 3.2 percent, supported by higher activity in wood products, non-metallic mineral products, furniture, machinery and equipment, and metal products, among other sectors.
Services grew 2.7 percent, slowing from a 4-percent expansion a year earlier. IT programming and related activities increased 10 percent, insurance and pension funding grew 8 percent, and financial services expanded 7.7 percent. Telecommunications rose 4.8 percent, while accommodation, food and beverage services grew 2.9 percent.
Agriculture contracted 2.3 percent, reversing the 2.5 percent growth recorded in the second quarter of 2025. The decline reflected weaker freshwater fishing and aquaculture, rice cultivation, sugar cane and tobacco, marine fishing and aquaculture, rubber and tea production, among other activities.
At current prices, services accounted for 52.7 percent of GDP, industry 25.9 percent and agriculture 8.4 percent.
The statistics department said the quarter was affected by uncertainty linked to escalating Middle East tensions, crude oil supply concerns and weaker tourism performance.
However, higher imports supported the availability of raw materials and machinery for industrial activity and contributed to increased import-related tax revenue. ■