Sri Lanka’s economy expanded by 4.8% in the first quarter of 2025, according to the latest National Accounts Estimates released by the Central Bank. While slightly below the 5.1% growth recorded during the same period in 2024, the figures highlight the economy’s continued resilience in the face of global economic challenges.
The growth was primarily driven by robust performances in the Industry and Services sectors. Manufacturing emerged as the leading contributor, adding 1.67 percentage points to overall GDP growth. This was followed by contributions from Construction (+0.69%), Financial Services (+0.50%), and Accommodation (+0.35%).
However, the Agriculture sector saw a contraction of 0.7%, reversing its 0.9% growth in the first quarter of 2024. Despite this, the Services sector posted a modest improvement, increasing from 2.5% to 2.8%. Meanwhile, the Industry sector recorded a slight decline, easing from 11.2% to 9.7% over the same period.
A sectoral breakdown of the GDP indicates that Services remained the largest contributor to economic output, followed by Industry, Agriculture, and Taxes less subsidies.
The Central Bank noted that while external conditions remain uncertain, sustained sectoral growth and policy stability have supported the ongoing recovery trajectory.
