Economy

Sri Lanka Economy Grows 5.1% in Q1 2026

Published

12 hours ago

June 18, 2026

Sri Lanka recorded a strong economic performance in the first quarter of 2026, with Gross Domestic Product (GDP) growing by 5.1 percent.

According to the Department of Census and Statistics, Sri Lanka’s GDP at constant prices rose to Rs. 3,652,503 million in the first quarter of 2026, compared to Rs. 3,476,664 million recorded during the same period in 2025.

At current prices, GDP reached Rs. 9,164,652 million, reflecting an 11 percent increase compared to the previous year, further underscoring the expanding scale of the economy.

The growth was driven by contributions from all three major sectors of the economy, with industry emerging as the strongest performer. Industrial activities expanded by 7.2 percent, supported by robust gains in construction and mining, as well as steady improvements in manufacturing. Construction activity, in particular, saw significant

The services sector, which remains the largest contributor to Sri Lanka’s economy, recorded a 3.4 percent expansion, with notable growth in financial services, insurance, information technology, and tourism-related activities. Increased economic activity and improved domestic demand played a key role in supporting the sector’s performance.

Agriculture, although showing more modest gains, also returned to positive territory with a 1.1 percent expansion, reversing a contraction recorded during the same period last year. Growth in certain crop segments helped offset declines in fisheries and some plantation crops.

Economy

Government to Invest Rs.15 Billion in BIA T1 Upgrade Without Foreign Loans

Published

2 days ago

June 17, 2026

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The Sri Lankan government has launched a Rs. 15 billion project to fully modernize Terminal 1 at Bandaranaike International Airport (BIA), Katunayake, without relying on foreign loans. The initiative aims to address growing passenger congestion and support the country’s expanding tourism sector.

Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku stated that the project will be funded entirely through local government resources while the construction of Terminal 2 continues. Planned upgrades include expanding the departure hall, improving security and immigration processing, redesigning the arrivals area and modernizing baggage handling systems.

Upon completion, Terminal 1’s annual passenger handling capacity is expected to increase from 6 million to 15 million passengers, significantly enhancing Sri Lanka’s position as a regional aviation hub.

Economy

Sri Lanka’s largest 100 MW solar project reaches 20% completion

Published

3 days ago

June 15, 2026

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Construction of the Siyambalanduwa solar power plant has reached 20% completion, Project Director Chamika Perera confirmed, noting plans to install 200,000 panels with a single‑axis tracking system built to international standards. Spread across 500 acres and launched in September, the Rs. 45 billion project will add 100 MW to Sri Lanka’s national grid.

Economy

Sri Lanka to launch export plan targeting $36bn by 2030

Published

5 days ago

June 13, 2026

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Sri Lanka is set to launch its strategic export roadmap for the next five years with the primary objective to achieve an export revenue target of 36 billion dollars by 2030, the country’s export development board said.

The National Export Development Plan (NEDP) 2026–2030 was developed by the Sri Lanka Export Development Board (EDB) with technical assistance from the Asian Development Bank (ADB).

“The national plan is structured around two main pillars, the first of which is the Horizontals, which provide the essential foundational support required to drive growth across all priority sectors,” EDB said.

These include trade facilitation, trade finance and investment ecosystem development, trade promotion and market access, supply chain management and consolidation centre operations, and quality infrastructure, standards, and ESG compliance.

Skills development, innovation, and entrepreneurship are also under this pillar.

As the second pillar, 8 priority sectors, or Verticals, have been identified, targeting enhanced export diversification and value addition.