FINANCIAL CHRONICLE – In the first quarter of 2026, Sri Lanka’s Gross Domestic Product (GDP) recorded a growth rate of 5.1 percent compared to the same quarter in the previous year, showing an increase from the 4.7 percent growth noted in the preceding quarter, according to data from the Department of Census and Statistics.
The GDP, measured at constant (2015) prices, reached 3,653 billion rupees in Q1 2026, up from 3,477 billion rupees in Q1 2025. This growth indicates a continued recovery from the significant 10.6 percent decline experienced at the height of the economic crisis in Q1 2023.
The industrial sector was the primary driver of this growth, expanding by 7.2 percent and contributing 27.2 percent to the overall economic output. Within the industrial category, mining and quarrying saw a remarkable increase of 19.5 percent, while construction activities grew by 16.3 percent. However, the manufacturing sector experienced a more modest growth of 2.8 percent.
The services sector also showed positive results, growing by 3.4 percent. Notably, insurance services surged by 22.0 percent, IT and business process management (BPM) services expanded by 16.1 percent, and financial services increased by 12.8 percent.
In agriculture, there was a slight recovery with a growth rate of 1.1 percent, contrasting with a contraction of 1.3 percent recorded the previous year. This growth occurred despite a 5.8 percent decrease in paddy production. However, substantial increases in coconut production, which rose by 64.8 percent, helped to balance out declines in tea and livestock production. (Colombo/Jun15/2026)
