*Sri Lanka’s Economy Expands 4.8% in 1QCY25 On Industrial Heft* Sri Lanka’s economic output, the amount of goods and services produced by the country in the first three months of CY25 expanded by 4.8%, extending the growth streak for the seventh consecutive quarter when the economy exit a prolonged decline in the 3QCY23. The growth has been led by the Industrial activities which grew by 9.7% from a year ago followed by 2.8% expansion in the Services activities. However the agricultural sector remained a sour spot, slightly declining 0.7%. The three sectors contributed 26.7%, 57.4% and 7.6% respective while the Taxes less subsidies on products contributed 8.3%. The 1Q growth was predominantly underpinned by a few economic activities such as financial and insurance services, manufacturing, construction, mining and quarrying and, accommodation services. The relatively stable exchange rate and the low interest rate played a key role in continuing to lift the economic activities during the period as the pickup in credit helped reinvigorate the economic activities across all sectors while the imports of intermediate and investment goods also helped prop up the economy.