Sri Lanka’s economy showed significant resilience in the first quarter of 2026, recording a positive real GDP growth rate of 5.1 percent. According to the latest National Accounts Estimates released by the Department of Census and Statistics (DCS), the country managed this expansion while navigating the lingering impacts of Cyclone Ditwah and emerging geopolitical tensions in the Gulf region.

The Gross Domestic Product (GDP) at constant (2015) prices for the first quarter of 2026 reached Rs. 3,652,503 million, up from Rs. 3,476,664 million in the first quarter of 2025. At current prices, the GDP rose to Rs. 9,164,652 million, reflecting an 11.0 percent increase compared to the previous year.

The Services sector remains the largest pillar of the economy, contributing 54.2 percent to the GDP, followed by Industry at 27.2 percent and Agriculture at 7.3 percent. Taxes less subsidies on products accounted for the remaining 11.3 percent.

Sectoral Performance

• Industrial Activities: This sector was the primary driver of growth, expanding by 7.2 percent. The surge was largely fueled by a 16.3 percent rise in construction activities and a 19.5 percent increase in mining and quarrying. Manufacturing also saw a 2.8 percent expansion, led by chemical and pharmaceutical products, which jumped 22.8 percent.
• Services Activities: The services sector grew by 3.4 percent. High growth was noted in insurance and pension funding (22.0 percent), IT programming and consultancy (16.1 percent), and financial services (12.8 percent), the latter benefiting from a lowered interest rate environment.
• Agricultural Activities: The sector reported a modest expansion of 1.1 percent, a turnaround from the 1.3 percent decline seen in the same period last year. While the growing of oleaginous fruits saw a massive 64.8 percent increase, the sector was hampered by significant contractions in freshwater and marine fishing, which dropped by 37.8 percent and 25.7 percent respectively.