Sri Lanka’s economy recorded a 5.1% growth rate in the first quarter of 2026, marking the highest first-quarter economic growth since 2021, according to Minister of Labour and Deputy Minister of Economic Development and Planning, Dr. Anil Jayantha Fernando.
Speaking at a media briefing held at the Department of Government Information today (17), Dr. Fernando stated that despite global and regional challenges, including the ongoing crisis in the Middle East, Sri Lanka has successfully maintained economic stability.
He noted that claims suggesting the country’s economy was heading towards a collapse were unfounded, emphasizing that the economic progress achieved in 2025 had laid a strong foundation for future growth.
The Minister said the overall performance of the agriculture, industry, and services sectors contributed to the positive economic outcome. The industrial sector recorded a growth rate of 7.2%, with mining and quarrying growing by 19.5%, construction by 16.3%, water supply by 11.9%, and electricity by 7.5%.
Although the agriculture sector faced challenges due to the impact of Cyclone Dithva, coconut cultivation recorded a notable growth of 64.8%.
Within the services sector, the insurance industry grew by 22%, while information technology and financial services recorded growth rates of 16.1% and 12.5%, respectively.
Dr. Fernando further stated that efficient revenue collection had played a key role in achieving this economic growth and maintaining fiscal stability. He added that the government had also been able to provide relief assistance to those affected by Cyclone Dithva.
