Saturday Sep 19, 2026
Saturday Sep 19, 2026
Saturday, 19 September 2026 00:05 - - {{hitsCtrl.values.hits}}
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| Treasury Secretary Dr. Harshana Suriyapperuma |
Treasury Secretary Dr. Harshana Suriyapperuma yesterday said the economy grew 4.2% in the second quarter of 2026, bringing first-half growth to 4.7%, a performance he described as commendable given the strain the ongoing Middle East war has placed on regional economies.
Releasing a special statement following the release of second-quarter GDP data by the Department of Census and Statistics, Dr. Suriyapperuma noted that quarterly growth has moderated from 5% in the second quarter of 2025 and stood at 4% in the same quarter of 2024.
He said this year’s growth came despite a significant escalation in the price per barrel of oil, which has disrupted supply chains for fuel and energy products and placed strain on the transportation, manufacturing and fisheries sectors.
“The data that has come out indicates that if you look at Pakistan and Bangladesh and similar other countries within the region, Sri Lanka has performed comparatively to a better position because of the policy intervention, timely intervention and proportionate intervention by the Government,” he said.
Dr. Suriyapperuma said the Government had gone beyond proposing relief measures to implementing them, with support packages already delivered to affected farmers, businesses, industries and the service sector.
“This has yielded and resulted in the economy growing at 4.2% despite the challenges at the macro level, and the country is still recovering from the cyclone that we had,” he said, referring to Cyclone Ditwah.
He said the Ministry of Finance would continue monitoring developments in the macro environment and the international arena, including the evolving Middle East crisis, to determine what further policy measures may be required. He noted that the higher dollar cost of fuel imports stemming from the crisis was placing pressure on the exchange rate between the rupee and the dollar, and that the Government was keeping a close watch on the situation.
On the outlook for the rest of the year, Suriyapperuma said the Government was focused on maintaining the growth momentum through the third and fourth quarters, and on ensuring continuous, affordable supplies of gas, fuel and other energy products for citizens despite global disruptions.
Looking further ahead, he said the 2027 Budget, due to be presented in the fourth quarter, would focus on creating the right environment for fishermen, farmers, industries, businesses and the service sector to continue their economic activities.
“We will be focusing on all these areas in order to create the best environment for our fishermen, for our farmers, for our industries, businesses and service sectors to thrive in order to continue their business activities, economic activities,” he said.
