Sri Lanka's economy grows 4.2 pc in Q2

COLOMBO: Sri Lanka's economy grew by 4.2% 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 by 11.3% to 8.25 trillion rupees, about US$25.09 billion, from 7.41 trillion rupees in the corresponding quarter of 2025.

Industry recorded the strongest performance among the three main sectors, expanding by 7.3% compared with 5.7% growth in the corresponding quarter of 2025.

Construction grew by 13.9%, while mining and quarrying expanded by 17.4%. Manufacturing increased by 3.2%, supported by higher activity in wood products, non-metallic mineral products, furniture, machinery and equipment, and metal products, among other sectors.

Services grew by 2.7%, slowing from a 4% expansion a year earlier. IT programming and related activities increased by 10%, insurance and pension funding grew by 8%, and financial services expanded by 7.7%. Telecommunications rose by 4.8%, while accommodation, food and beverage services grew by 2.9%.

Agriculture contracted by 2.3%, reversing the 2.5% 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% of GDP, industry 25.9% and agriculture 8.4%.

By RSS/Xinhua