Sri Lanka’s economy expanded by 4.2% year-on-year during the second quarter of 2026, maintaining its growth momentum despite continued challenges in the global economy.
Data released by the Department of Census and Statistics showed that Gross Domestic Product (GDP) at constant prices increased to Rs. 3.029 trillion during the quarter, compared with Rs. 2.908 trillion recorded in the corresponding period of 2025.
The industrial sector emerged as the strongest contributor to the expansion, recording growth of 7.3% during the quarter. The services sector also grew by 2.7%, while the agriculture sector contracted by 2.3%.
At current prices, GDP rose by 11.3% to Rs. 8.254 trillion in the second quarter of 2026, from Rs. 7.414 trillion recorded during the same period last year.
The services sector continued to account for the largest share of economic activity, contributing 52.7% of GDP. The industrial sector accounted for 25.9%, while agriculture represented 8.4%.
Deputy Secretary to the Treasury A. K. Seneviratne said the economic expansion was achieved despite the effects of ongoing global conflicts and rising international prices of fuel and essential commodities.
He said the Government allocated Rs. 100 billion from the national budget during the second quarter to help ease the impact of these external pressures on the public.
The funds were used to provide support through fuel and electricity subsidies, as well as assistance to those engaged in the agriculture and fisheries sectors.
Officials said the measures helped cushion the economy from external shocks while supporting economic activity and maintaining the country’s growth momentum.