Sri Lanka’s Gross Domestic Product (GDP) grew by 4.2% year-on-year in the second quarter of 2026, according to official data released by the Department of Census and Statistics (DCS).

The total real GDP at constant (2015) prices increased to Rs. 3,029,816 million in the second quarter of 2026, up from Rs. 2,908,570 million recorded in the same period of 2025. At current prices, the national GDP expanded by 11.3% to reach Rs. 8,254,176 million.

According to the DCS, the economic environment during the quarter was influenced by external uncertainties, including escalating tensions in the Middle East, potential crude oil supply shortages, and a subdued performance in the tourism sector.

Despite these challenges, performance across major economic sectors remained varied:

• Industrial Activities: Led economic expansion with a 7.3% growth rate. Strong gains were recorded in mining and quarrying (17.4%), construction (13.9%), and overall manufacturing (3.2%).
• Services Activities: Expanded by 2.7%, supported by growth in IT programming consultancy (10.0%), insurance and pension funding (8.0%), and financial services (7.7%).
• Agricultural Activities: Declined by 2.3%, driven lower by significant contractions in freshwater fishing (-61.0%), rice growing (-15.1%), sugarcane and tobacco (-14.7%), and marine fishing (-10.1%).

In terms of sector contributions to current-price GDP, Services accounted for 52.7%, Industry contributed 25.9%, Agriculture represented 8.4%, and taxes less subsidies on products made up 13.0%.