The economy grew 4.2% in the second quarter of 2026, as higher industrial output offset a 2.3% decline in agriculture.
The Department of Census and Statistics (DCS) said Gross Domestic Product (GDP) reached Rs. 3.03 trillion at constant 2015 prices during the April–June quarter.
GDP stood at Rs. 2.91 trillion in the same period of 2025.
Industrial activity grew 7.3% during the quarter. Services recorded 2.7% growth, while agriculture declined 2.3%.
Construction and mining drive industrial growth
Construction grew 13.9% during the quarter, according to the DCS.
Mining and quarrying increased by 17.4%.
Manufacturing activity also grew, recording a 3.2% increase from the same quarter of 2025.
The DCS said higher imports of raw materials and machinery supported industrial activity during the quarter.
Those imports also generated government revenue through import-related taxes.
Agriculture records lower output
Agricultural activity fell as several key areas recorded lower production.
Rice cultivation, freshwater fishing and marine fishing declined during the quarter.
Sugar cane and tobacco cultivation also recorded lower output.
Tea and rubber production declined as well.
Services grew 2.7%, with growth recorded in information technology programming and consultancy, insurance and pension funding, financial services and telecommunications.
Transportation and accommodation and food service activities also recorded growth.
The DCS said economic activity during the quarter faced uncertainty linked to tensions in the Middle East.
Tourism activity remained subdued, while lower agricultural output also affected the overall growth rate.
The second-quarter figures show that industrial activity grew faster than the other two main sectors, while agriculture recorded a contraction.
Last modified: September 16, 2026
