Sri Lanka GDP grows 4.8-pct in 4Q, full year 5.0-pct in low inflation

Sri Lanka’s economy grew 4.8 percent in the fourth quarter of 2025, with full year growth estimated at 5.0 percent helped by lower inflation and exchange rate stability, the state statistics office said.

Sri Lanka’s economy grew 5.6 percent in the same quarter of the previous year.

“The economic climate surrounded in 2025 was favorable for a solid economic performance through few aspects; entrepreneur friendly inflation started to rise early in the third quarter of 2025 coupled with the mostly stabilize exchange rate amid continuously decreasing interest rate,” the Statistics Department said.

The agriculture sector grew 1.4 percent in 2025, and Industry grew 7.8 percent and services were up 3.3 percent for the full year 2025.

In the fourth quarter, Agriculture grew 2.1 percent, industry grew 7.3 percent, and services grew 3.1 percent.

Sri Lanka is recovering from the worst currency crisis in the history of the central bank after aggressive monetary and fiscal stimulus which ended in a sovereign default in 2022.

Interest rates had also fallen with some expansion in private credit.

Source: Economy Next