FX.co ★ Sri Lanka’s Economic Growth Eases to 4.8% in Q1

In the first quarter of 2025, Sri Lanka experienced a year-on-year economic growth of 4.8%, a slight decrease from the 5.4% growth observed in the previous quarter. The industrial sector, although showing a reduction in momentum, continued to play a pivotal role in sustaining economic growth, with a 9.7% increase compared to the 13.1% rise in Q4 2024. This sector's robustness was anchored by significant contributions from manufacturing, mining, and construction. In contrast, agricultural activity persisted in its contraction, albeit at a reduced rate of -0.7% compared to -2.2% in the preceding quarter. The services sector saw a slight increase in growth, improving to 2.8% from 2.5%, led by remarkable performances in insurance, financial services, hospitality, IT consulting, and logistics, including postal and courier services.