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Sri Lanka’s economy expanded by 4.8% year-on-year in the first quarter of 2025, easing from a 5.4% growth rate in the previous quarter. While the industrial sector lost some momentum, it remained a key driver of growth, rising 9.7% compared to 13.1% in Q4 2024. Strong performances in manufacturing, mining, and construction underpinned the sector’s resilience. Agricultural activity continued to contract, though at a slower pace (-0.7% vs -2.2% in Q4). Meanwhile, growth in the services sector accelerated modestly to 2.8%, up from 2.5%, driven by robust gains in insurance, financial services, hospitality, IT consulting, and logistics—including postal and courier services.