Sri Lanka GDP Growth Eases to 4.8% in Q4 2025

2026-03-17 17:06 By Larissa Caser 1 min. read

Sri Lanka's economy expanded 4.8% year-on-year in the fourth quarter of 2025, easing from a 5.4% expansion in the previous quarter.

The slowdown was reflected across all three major sectors of the economy, with agricultural activities slowing the most (2.1% versus 3.6% in Q3 2025).

Industrial production also slowed (7.3% versus 8.1%), despite recording strong performances for construction (8%), mining and quarrying (20.9%), utilities (10.5%) and manufacture of basic metals (19.1%).

Services activities growth eased (3.1% versus 3.5%), supported by increases in wholesale and trade (1.3%), transports (1.2%), real estate activities (2.7%) and financial services (9.7%).

Considering the full year, Sri Lanka's GDP expanded by 5% while still recovering from it's financial crisis.

The economy is heavily reliant on fuel imports, making it exposed to fluctuations in global energy prices, which have risen since the onset of the Middle East conflict.



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Sri Lanka GDP Growth Eases to 4.8% in Q4 2025
Sri Lanka's economy expanded 4.8% year-on-year in the fourth quarter of 2025, easing from a 5.4% expansion in the previous quarter. The slowdown was reflected across all three major sectors of the economy, with agricultural activities slowing the most (2.1% versus 3.6% in Q3 2025). Industrial production also slowed (7.3% versus 8.1%), despite recording strong performances for construction (8%), mining and quarrying (20.9%), utilities (10.5%) and manufacture of basic metals (19.1%). Services activities growth eased (3.1% versus 3.5%), supported by increases in wholesale and trade (1.3%), transports (1.2%), real estate activities (2.7%) and financial services (9.7%). Considering the full year, Sri Lanka's GDP expanded by 5% while still recovering from it's financial crisis. The economy is heavily reliant on fuel imports, making it exposed to fluctuations in global energy prices, which have risen since the onset of the Middle East conflict.
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