New report details Sri Lanka's economic performance in Q2 2026
Sri Lanka’s economy expanded by 4.2 per cent in the second quarter of 2026, slowing from the 5.0 per cent growth recorded during the same period last year.
The latest economic data shows mixed performance across key sectors. Industrial activity grew 7.3 per cent and the services sector expanded 2.7 per cent, while agriculture contracted by 2.3 per cent.
Taxes less subsidies on products also increased by 11.9 per cent during the quarter.
Industrial production remained broadly stable. The Index of Industrial Production (IIP) rose 0.2 per cent year-on-year to 101.5 in July, supported mainly by higher production of food and other non-metallic mineral products.
August Purchasing Managers’ Index data also pointed to continued expansion in both manufacturing and services.
Financial conditions showed some movement during the week ending September 18. The Weekly Average Weighted Prime Lending Rate increased three basis points to 10.76 per cent, while the Average Weighted Call Money Rate rose to 8.91 per cent from 8.87 per cent.
Market liquidity remained in surplus at Rs.359.79 billion, compared with Rs.366.11 billion a week earlier.
The stock market also recorded declines. The All-Share Price Index fell 1.53 per cent to 21,056.26 points, while the S&P SL20 Index dropped 1.23 per cent to 5,928.89 points.
In the foreign exchange market, the Sri Lankan rupee had depreciated 6.7 per cent against the US dollar so far in 2026 as of September 18.
Tourism continued to generate significant foreign exchange, with earnings reaching US$264.4 million in August, compared with US$285.5 million in July and US$258.9 million in August 2025.
Meanwhile, global crude oil prices remained volatile during the week amid concerns over supply disruptions. Prices later eased as alternative supply routes helped reduce pressure on global supplies.
More updates to come on AusNewsLanka.
Source : Daily News
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