Sri Lanka records 5 pct GDP growth in 2025

COLOMBO, March 18 (Xinhua) -- Sri Lanka's economy expanded by 5.0 percent in 2025, driven mainly by strong performance in industrial activities, according to official estimates released by the Department of Census and Statistics.

The country's gross domestic product (GDP) at current prices increased by 8.8 percent to 32.75 billion rupees (105.2 billion U.S. dollars), compared to 30.09 billion rupees in the previous year.

Sector-wise, industry recorded the highest growth at 7.8 percent, followed by services at 3.3 percent and agriculture at 1.4 percent. The services sector remained the largest contributor to GDP at current prices, accounting for 54.6 percent, while industry contributed 25.4 percent and agriculture 8.4 percent.

Industrial growth was supported by expansion in construction, mining and quarrying, along with broad-based improvements in manufacturing. Electricity generation, water supply, and waste management activities also recorded positive growth.

Economic activity during 2025 was supported by easing financial conditions, including declining interest rates, a relatively stable exchange rate, and improvements in domestic demand. The lifting of vehicle import restrictions also contributed to increased activity in trade and related services.