Sri Lanka’s economy grew by 4.2% from a year earlier between April and June, driven by a 7.3% expansion in industry, according to the Department of Census and Statistics. Agriculture moved in the opposite direction and contracted by 2.3%.
The official second quarter national accounts show that rice cultivation fell by 15.1%. Freshwater fishing and aquaculture recorded a 61% contraction. Marine fishing fell by 10.1%.
Construction grew by 13.9% during the same quarter. Mining and quarrying expanded by 17.4%. Manufacturing grew by 3.2%.
The difference between the sectors is visible in the national growth figure. Agriculture accounted for 8.4% of GDP at current prices during the quarter. Industry represented 25.9%, while services accounted for 52.7%.
Price records from the Hector Kobbekaduwa Agrarian Research and Training Institute show another part of the rural economy. Farmers in producing districts often received much less per kilogram than consumers later paid in Colombo.
Beans sold for Rs. 316 in Dambulla and up to Rs. 800 in Colombo
HARTI recorded an average producer price of Rs. 316 a kilogram for beans in Dambulla during the week from May 29 to June 4. The average in Welimada was Rs. 272.
During the same week, Colombo retail prices ranged from Rs. 450 to Rs. 800 a kilogram, according to HARTI’s Weekly Food Commodities Bulletin.
The two producer prices averaged Rs. 294. The midpoint of the Colombo retail range was Rs. 625. The retail midpoint was about 113% above the average producer price, according to a Lakbima News calculation.
The distance between the producing area and the Colombo shop
| Crop | Producer price | Colombo retail |
|---|---|---|
| Beans | Rs. 316 Dambulla Rs. 272 Welimada |
Rs. 450 to Rs. 800 |
| Cabbage | Rs. 134 Nuwara Eliya Rs. 121 Welimada Rs. 166.67 Hanguranketha |
Rs. 160 to Rs. 400 |
Lakbima News calculations use HARTI producer averages and the midpoint of the published Colombo retail range. The difference covers collection, transport, sorting, losses, wholesale handling and retail margins.
Cabbage prices followed a similar pattern. Farmers received an average Rs. 134 a kilogram in Nuwara Eliya, Rs. 121 in Welimada and Rs. 166.67 in Hanguranketha.
The average across those three producing areas was about Rs. 141. Colombo retail prices ranged from Rs. 160 to Rs. 400. Their midpoint was Rs. 280, almost twice the average producer price.
The figures describe different points in the supply chain. A vegetable leaving a farm passes through collection and wholesale markets before reaching a retailer. Transport costs and damaged produce also enter the final price.
HARTI recorded rapid price changes even within that chain. Bean wholesale prices fell by 30% during the week after supplies increased from Balangoda, Welimada and Kandy. Carrot and leek prices rose by 27% as supplies from Nuwara Eliya declined.
Paddy prices were lower than a year earlier
Rice farmers faced a separate pressure during the quarter.
HARTI recorded short grain paddy at Rs. 125 to Rs. 136 a kilogram across major producing areas during the May 29 to June 4 period. Long grain white paddy ranged from Rs. 100 to Rs. 109. Long grain red was recorded between Rs. 90 and Rs. 100.
Compared with the same period a year earlier, farmgate prices for long grain white and long grain red paddy were 20% to 29% lower. Short grain prices had fallen by between 1% and 13%. Keeri Samba prices increased by between 9% and 21%.
Those price movements came during a quarter in which the DCS recorded a 15.1% contraction in rice cultivation.
Farmers have also raised concerns about the prices available when they sell their harvest. In September, farmer organisation representatives told Lakbima News that some growers had sold paddy below government purchasing prices.
Fertilizer support increased during Yala
The Government increased fertilizer support during the 2026 Yala season as farmers prepared land for cultivation.
Cabinet raised the subsidy for paddy from Rs. 25,000 to Rs. 30,000 per hectare. Support for other crops cultivated in paddy lands increased from Rs. 15,000 to Rs. 18,000 per hectare. A 50 kilogram bag of urea was made available through Agrarian Service Centres at a fixed price of Rs. 10,200, according to the Cabinet Office.
The Government planned to cultivate about 550,000 hectares of paddy during Yala. Officials estimated that the season would require about 125,000 metric tonnes of urea, including 83,000 tonnes for paddy.
Companies and distributors held about 102,000 tonnes at the beginning of March, according to the President’s Office. Purchases increased during March as concerns over international supply prompted stock buying.
Weather has added pressure in several producing districts. Lakbima News reported in September that dry conditions were already affecting farming communities ahead of the Maha cultivation season, with water availability becoming part of planting decisions.
Agriculture did not fall evenly
The national agriculture figure covers crops and other activities that moved in different directions.
Forestry and logging grew by 9.7% in the second quarter. Spices increased by 7%, while cereal cultivation grew by 5.2%. Vegetable cultivation recorded growth of 0.8%.
The largest falls came from freshwater fishing, rice cultivation and sugar cane and tobacco. Rubber declined by 2.2% and tea by 1.9%.
The DCS figures therefore place much of the agricultural contraction in several large activities that support rural employment and household income. HARTI’s market records show the prices farmers were receiving during part of the same quarter, including year on year declines of as much as 29% for some paddy varieties.
Department of Census and Statistics, National Accounts Estimates for the second quarter of 2026; Hector Kobbekaduwa Agrarian Research and Training Institute, Weekly Food Commodities Bulletin for May 29 to June 4, 2026; Office of the Cabinet of Ministers; Presidential Secretariat.
