Sri Lanka’s Gross Domestic Product (GDP) recorded a growth of 5.1% during the first quarter of 2026, with all three major sectors of the economy making positive contributions to the expansion, according to data from KPMG.
The industrial sector led the growth momentum, expanding by 7.2%, while the services sector recorded a growth of 3.4%. The agriculture sector also showed improvement, growing by 1.1% during the quarter.
Meanwhile, the Central Bank of Sri Lanka increased its policy interest rate by 100 basis points to 8.75% as part of measures aimed at managing inflation expectations.
Private sector credit expanded by Rs. 485.4 billion during the first quarter of 2026, marking a 24.0% increase compared to the corresponding period of the previous year.
The latest figures indicate continued recovery momentum in Sri Lanka’s economy, supported by broad-based growth across key sectors and increased private sector lending activity.
