Sri Lanka’s economy grows 4.9% in second quarter

Sri Lanka’s economy recorded a 4.9% year-on-year growth in the second quarter of 2025, according to official data released on Monday (15th).

The Department of Census and Statistics (DCS) announced the estimated Gross Domestic Product (GDP) at both current and constant (2015) prices, along with other macroeconomic indicators, for the period from April 1 to June 30, 2025.

GDP at constant (2015) prices rose to Rs. 2,883,559 million in Q2 2025, compared to Rs. 2,749,504 million in Q2 2024. Accordingly, the GDP growth rate for the quarter was recorded at 4.9%.

Breaking down sectoral performance, agriculture grew by 2.0%, industry by 5.8%, and services by 3.9% during the quarter.

The DCS noted that this marks the eighth consecutive quarter of positive growth, reflecting the continued recovery from the previous economic downturn, supported by favorable conditions over the past seven quarters.

Additionally, the Department highlighted that the lifting of vehicle import restrictions and relatively lower interest rates boosted growth across major economic activities such as wholesale and retail trade, motor vehicle repairs, goods and passenger transport, warehousing, financial services, insurance, and taxes less subsidies on products.

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