Sri Lanka Records 4.9% Economic Growth in Q2 2025

Sri Lanka’s economy posted a strong performance in the second quarter of 2025, recording a 4.9% growth rate, according to the latest data. This marks the eighth consecutive quarter of positive growth, signaling a steady recovery from previous economic downturns.

A key driver of this expansion was the easing of vehicle import restrictions, which, coupled with relatively low interest rates, boosted activity in the wholesale and retail trade sector, especially in vehicle sales and maintenance.

The transportation sector also recorded significant improvements, with both goods and passenger movement contributing to the overall growth momentum.

Meanwhile, financial and insurance services played a pivotal role, supported by reduced taxes on goods and services. Traditional sectors such as construction and mining reported impressive gains, further strengthening the country’s economic outlook.

Economists note that the sustained growth trajectory reflects a return of confidence in the local economy, while ongoing reforms and sectoral expansions are expected to provide a solid foundation for continued stability in the coming quarters.