FX.co ★ Sri Lanka GDP Grows 4.9% in Q2 Amid Economic Recovery

Sri Lanka's economy demonstrated a growth of 4.9% year-on-year in the second quarter of 2025, showing a slight improvement from the 4.8% increase recorded in the previous quarter. This period marks the eighth consecutive quarter of growth, indicating a steady recovery from one of the most severe financial crises in the country's recent history. The acceleration, albeit modest, was bolstered by a 3.9% rise in services output compared to 2.8% in the first quarter of 2025. Contributing to this growth were significant performances in various sub-sectors, notably IT programming and consultancy, which surged by 18.7%, financial services, up by 12.3%, and postal and courier services, which increased by 11.6%. In the agricultural sector, activity climbed by 2.0%, reversing a decline of 0.7% in the first quarter. Key drivers of this growth included notable gains in animal production, which rose by 13.9%, cereal cultivation, which increased by 12.4%, while plant propagation and forestry and logging each grew by 9.5%. Meanwhile, the industrial sector observed a 5.8% expansion, compared to 9.7% in the first quarter, supported by advancements in construction, which grew by 8.5%, mining and quarrying, which surged by 16.6%, and manufacturing, up by 3.7%.