Sri Lanka’s GDP Expands 5.4% in Third Quarter of 2025

Sri Lanka’s economy grew by 5.4 percent in the third quarter of 2025, supported by broad-based expansion across agriculture, manufacturing and services, according to the Department of Census and Statistics.

Agricultural output increased by 3.6 percent during the period, while manufacturing recorded robust growth of 8.1 percent. The services sector expanded by 3.5 percent, reflecting improved activity across several sub-sectors.

The Central Bank’s policies have helped maintain economic stability throughout 2025, providing a stronger operating environment for businesses and consumers.

Although the rupee has shown signs of weakening, reduced imports of intermediate goods contributed significantly to growth in parts of the manufacturing sector and construction activity. Prices of imported goods remained stable or declined, aided by tighter United States monetary policy, despite currency depreciation, particularly toward the latter part of the year.

An expansion in private sector credit resulted in notable growth in the financial sector. Insurance, reinsurance and pension funding activities surged by 18.0 percent, while financial service activities grew by 13.2 percent.

Tourism-related activity also strengthened the services sector, with accommodation, food and beverage services expanding by 9.3 percent. Information technology programming, consultancy and related services recorded growth of 8.5 percent.