2025.12.1511:38:56UTC+00Sri Lanka’s GDP Growth Accelerates to Highest This Year

In the third quarter of 2025, Sri Lanka's economy experienced a notable expansion, with a year-on-year growth rate of 5.4%. This marks the most robust growth since the final quarter of 2024 and an increase from the 4.9% rise observed in the second quarter. This period of growth extends over nine consecutive quarters, indicating sustained economic momentum.

Agricultural production showed significant improvement, climbing to 3.6% compared to 2.0% in the previous quarter. Key drivers of this sector's surge included plant propagation, which jumped by 46.6%, oleaginous fruits like coconut, which increased by 27.1%, and a boost in sugar cane, tobacco, and other non-perennial crops, which rose by 11.2%.

The industrial sector saw an 8.1% growth rate, up from 5.8%, bolstered by activities in construction (up by 12.2%), mining and quarrying (up by 17.5%), and manufacturing (up by 5.3%).

Service activities grew by 3.5%, albeit slightly lower than the 3.9% in the previous quarter. While public administration and defense experienced a slight decline of 0.9%, other sub-sectors performed well. Notable increases were noted in insurance, reinsurance, and pension funding, which rose by 18.0%, financial services, which saw an increase of 13.2%, and postal and courier services, which grew by 10.3%.