Sri Lanka’s economy expanded by 5.1 percent during the first quarter of 2026, according to the latest National Accounts Estimates released by the Department of Census and Statistics (DCS).
The Department stated that the positive growth reflects continued economic recovery and increased activity across key sectors, particularly manufacturing and services.
According to the report, Sri Lanka’s Gross Domestic Product (GDP) at constant 2015 prices increased from Rs. 3,476.7 billion in the first quarter of 2025 to Rs. 3,652.5 billion during the corresponding period of 2026.
GDP measured at current market prices also recorded strong growth. The value rose from Rs. 8,253.5 billion in the first quarter of 2025 to Rs. 9,164.7 billion in the first quarter of 2026, representing an increase of 11 percent.
The services sector remained the largest contributor to the economy, accounting for 54.2 percent of total GDP. Growth in banking and financial services, transportation, information technology, and tourism activities contributed significantly to the sector’s performance.
The industrial sector, which includes manufacturing and construction activities, contributed 27.2 percent of GDP, making it the second-largest component of the economy.
Meanwhile, the agriculture sector accounted for 7.3 percent of total GDP during the quarter.
Taxes on products, less subsidies, represented 11.3 percent of GDP during the period under review.
The latest figures indicate that Sri Lanka’s economic recovery has continued into 2026 following the severe economic crisis experienced in recent years.
Economists note that sustained growth will depend on maintaining macroeconomic stability, controlling inflation, improving productivity, attracting investment, and strengthening domestic production.
The positive first-quarter performance is expected to provide further support for economic recovery efforts, although global economic conditions and external risks remain important factors influencing future growth prospects.
