# Sri Lanka economic performance and indicators

> Live situation record from CLSTR: https://clstr.news/situations/sri-lanka-economic-performance-and-indicators
> Updated: 2026-09-15T13:36:35.000Z. Sources: 12. Developments: 2.

Sri Lanka’s economy has shown divergent performance through the middle of 2026. In August, the country faced rising inflation, which reached 8% due to food price increases, alongside a significant rise in gross public debt to nearly Rs. 33 trillion. While export earnings increased by 5.5% compared to the previous year and foreign investment in rupee bonds saw recent inflows, the current account recorded its fourth consecutive monthly deficit in July.

By the second quarter of 2026, the economy expanded by 4.2%, a slowdown from the 5.1% growth recorded in the first quarter. This growth was driven by a 7.3% expansion in the industrial sector, particularly in construction and mining. However, this was offset by a 2.3% contraction in the agriculture sector, affecting various crops and fishing, which officials attributed to economic uncertainty and subdued tourism.

## Timeline

### 2026-09-15: Sri Lanka economy grows 4.2% in Q2 2026 amid agricultural contraction

Sri Lanka’s GDP grew by 4.2% in Q2 2026, a slowdown from Q1. Industrial growth led the expansion, while the agriculture sector contracted by 2.3% due to declines in various cultivation and fishing activities.

5 sources. https://clstr.news/cluster/sri-lanka-economy-grows-42-in-q2-2026-amid-agricultural-contraction

### 2026-08-31: Sri Lanka economy shows mixed signals with rising inflation and debt

Sri Lanka reports rising inflation of 8% and public debt nearing Rs. 33 trillion, despite growing export earnings and a recovering Colombo Stock Exchange.

9 sources. https://clstr.news/cluster/currency-markets-show-stability-in-sri-lanka-and-peru

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Cite as: Sri Lanka economic performance and indicators. CLSTR, https://clstr.news/situations/sri-lanka-economic-performance-and-indicators