FINANCIAL CHRONICLE – Sri Lanka has recorded a 5 percent growth in gross domestic product (GDP) for 2025, surpassing 106.8 billion dollars, according to provisional GDP estimates from the country’s Department of Census and Statistics.
The services sector made the largest contribution to GDP in 2025, accounting for 54.6 percent, followed by industries at 25.4 percent. Agriculture and taxes less subsidies on products were recorded at 8.4 percent and 11.6 percent, respectively.
This growth in GDP for 2025 marks a continuation of the upward trend initiated in 2024, which was the first year of GDP growth following Sri Lanka’s economic crisis in 2022, during which GDP contracted by 7.3 percent.
Pragmatic strategies, including tax reforms and agreements with the International Monetary Fund (IMF), enabled Sri Lanka to exceed its projected 4.4 percent growth in 2024, achieving a 5 percent growth rate instead. Key industries, such as tourism and construction, played significant roles in bolstering the island nation’s GDP.
To maintain the momentum of recovery, Central Bank Deputy Director of Communications Poongothai Venuganan stated, “The next jump will likely require concerted initiatives from both public and private stakeholders to boost productivity across the economy through ‘investment’ and ‘infusion’ of global best practices to create ‘innovation’ led growth.”
In 2025, Sri Lanka achieved its highest GDP per capita to date, amounting to 4,909 dollars. This figure is a notable increase from 4,398.9 dollars in 2017 and a decline to 3,342.6 dollars in 2022 as the crisis unfolded.
“Even as new uncertainties emerge – particularly the war in the Middle East – this milestone underscores the remarkable pace of Sri Lanka’s recovery since the country faced its deepest economic crisis in 2022,” remarked Central Bank Deputy Governor Chandranath Amarasekara.
(Colombo/March 23/2026)
