Sri Lanka's economy has grown 5.1% in the first quarter of 2026, the Department of Census and Statistics has said

Sri Lanka's Gross Domestic Product expanded by 5.1% in the first quarter of 2026 compared to the same period last year, according to data released by the Department of Census and Statistics.

That reflected an acceleration from the 4.7% growth recorded in the previous quarter, and was the strongest quarterly expansion in over a year.

GDP, measured at 2015 prices, reached Rs. 3,653 billion, up from Rs. 3,477 billion in the first quarter of 2025.

Context

GDP – or Gross Domestic Product – is the total value of all goods and services produced within a country over a given period, and it is the most widely used measure of how well an economy is performing.

To put the most recent growth into context, Sri Lanka’s GDP had contracted by 10.6% in the same quarter (January 1 to Match 31pril) three years ago -- the worst point of Sri Lanka’s economic crisis.

It also represented five consecutive quarters of positive growth indicating that Sri Lanka’s economic recovery is accelerating rather than plateauing.

Economic recovery

The industry sector expanded 7.2%, contributing 27.2% to total economic output.

Within that sector, mining and quarrying surged 19.5%, while construction grew 16.3%.

Manufacturing, however, told a different story, growing at a much softer 2.8%, suggesting that while domestic construction is booming, the factory floor hasn't quite kept pace.

In contrast, the Services sector – which makes up the largest share of the economy – expanded by just 3.4%.

Within the sector, insurance activities surged 22%, IT and BPM services grew 16.1% and financial services rose 12.8%.

The growth in IT and BPM services underlines reporting from the Export Development Board, which reported that it contributed to 22% of Sri Lanka’s export earning for the first quarter of this year, outearning tea.