By The Pulseline News Desk
Sri Lanka’s economic recovery continued to gather pace in the first quarter of 2026, with the country recording a 5.1 percent growth in Gross Domestic Product (GDP), according to the latest National Accounts Estimates released by the Department of Census and Statistics (DCS).
The figures indicate that Sri Lanka’s GDP at constant 2015 prices increased to Rs. 3,652.5 billion during the first three months of 2026, compared with Rs. 3,476.7 billion recorded in the corresponding period of 2025. The growth reflects a steady expansion across key sectors of the economy, underscoring the country’s resilience amid ongoing economic reforms and recovery efforts.
At current market prices, the economy expanded even more strongly, with GDP rising by 11 percent year-on-year to Rs. 9,164.7 billion in the first quarter of 2026, up from Rs. 8,253.5 billion in the same period last year. The increase highlights both higher economic activity and price effects across various sectors.
The services sector remained the dominant contributor to economic output, accounting for 54.2 percent of GDP. Activities within the services sector continued to play a pivotal role in supporting overall growth, reflecting increased performance in trade, transport, financial services, telecommunications and other service-related industries.
Meanwhile, the industrial sector contributed 27.2 percent of GDP, reinforcing its position as the second-largest component of the economy. Manufacturing, construction and other industrial activities continued to support economic expansion, benefiting from improving business confidence and investment activity.
The agriculture sector, which remains a critical source of employment and livelihoods, contributed 7.3 percent of GDP during the quarter. The sector’s performance was aided by favourable production trends in several key agricultural commodities.
In addition to the three major economic sectors, taxes less subsidies on products accounted for 11.3 percent of GDP, reflecting the contribution of government revenue measures to the overall economy.
The latest growth figures suggest that Sri Lanka is maintaining the positive economic momentum witnessed over the past year. Analysts note that sustained growth in services and industry, coupled with continued macroeconomic stability, will be essential for strengthening investor confidence, generating employment opportunities and supporting higher living standards.
As policymakers focus on consolidating economic gains, the first-quarter performance offers a positive signal that the country’s recovery trajectory remains on track, providing a foundation for continued growth throughout 2026.
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