Sri Lanka economy reports 4.9% growth in second quarter

Sri Lanka’s economy grew 4.9 per cent year-on-year in the second quarter of 2025, official data showed on Monday, indicating a strengthening recovery from the coutry’s worst financial crisis in decades.

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Sri Lanka's agriculture sector grew by 2 per cent in the second quarter from a year earlier, while industrial output expanded by 5.8 per cent, and services grew by 3.9 per cent, the census and statistics department said in a statement.

Struck by a severe shortage of dollars, the economy went into free fall in 2022, contracting 7.3 per cent as it grappled with soaring inflation, a sharply weaker currency and foreign debt default.

The economy shrank 2.3 per cent in 2023.

Strong recovery