COLOMBO — Sri Lanka’s macroeconomic recovery demonstrated robust momentum during the second quarter (April–June) of 2026, registering an overall Gross Domestic Product (GDP) growth rate of 4.2%, according to official National Accounts estimates released by the Department of Census and Statistics.

The quarterly expansion was primarily propelled by a powerful 7.3% surge in industrial activities. Within the industrial sector, construction recorded a 13.9% year-on-year jump, while mining and quarrying rose by 17.4%, reflecting vigorous domestic building and infrastructure development across urban corridors. The services sector maintained steady growth of 2.7%, while the agricultural sector contracted marginally by 2.3% due to weather disruptions in select cultivation zones.

In tandem with real GDP growth, the Central Bank of Sri Lanka (CBSL) confirmed that official gross reserve assets increased to US$ 6.9 billion as of the end of August 2026—a 4.6% increase over the previous month and the highest reserve cushion recorded in five months.

The Sri Lankan Rupee maintained stable trading conditions around 329.85 LKR per US Dollar, with policy interest rates holding steady (SDFR at 9.01% and SLFR at 9.77%) ahead of the upcoming Monetary Policy Board review meeting scheduled for September 29–30, 2026.