SriLanka, Sept. 21 -- Sri Lanka's economy grew by 4.2 per cent in the second quarter of 2026, compared to the 5.0 per cent growth recorded in the corresponding quarter of 2025, with industry and services recording positive growth while agriculture contracted.

According to the latest weekly economic highlights, industrial activity expanded by 7.3 per cent and services grew by 2.7 per cent during the quarter, while agricultural activities contracted by 2.3 per cent.

Taxes less subsidies on products increased by 11.9 per cent. The Index of Industrial Production (IIP) rose 0.2 per cent year-on-year to 101.5 in July 2026, supported mainly by increased production of food products and other non-metallic mineral products.

Purchasing Managers' ...