Sri Lanka agriculture growth gained fresh momentum in August 2025, driven by rising paddy and coconut production. However, the latest central bank data also reveals declines in tea, rubber, and inland fish output.
Sri Lanka agriculture growth accelerates with strong paddy and coconut output, while tea and rubber face setbacks.
Sri Lanka agriculture continues to play a pivotal role in the island’s economy, and the latest figures released by the Central Bank of Sri Lanka highlight both opportunities and challenges within the sector. According to the September 2025 Agriculture Sector Data Bulletin, paddy and coconut production recorded significant gains in August, while key export crops like tea and rubber saw declines.
The bulletin forecasts that paddy production for the 2025 Yala season will reach approximately 2.21 million metric tons based on the sown extent as of the end of August. This reflects an impressive 11.9 percent increase compared to the previous Yala season. Overall paddy production for 2025 is estimated at 4.96 million metric tons, marking a 5.5 percent rise from 2024 levels. This surge in output underscores a rebound in domestic food production following a period of weather-related disruptions and economic pressures.
Coconut production has also shown a notable recovery, climbing 17.8 percent in August 2025 compared to the same month in 2024. Industry analysts point to improved climatic conditions and better fertilizer availability as key factors contributing to this growth. Coconut remains one of Sri Lanka’s vital cash crops, supporting both domestic consumption and export earnings.
Despite the positive outlook for paddy and coconut, the country’s fisheries sector experienced mixed results. Total fish production fell by 10.7 percent year-on-year in August, primarily due to a sharp 46.9 percent decline in inland fish output. However, marine fish production offered a silver lining, growing by 3.4 percent during the same period, reflecting a partial recovery driven by improved offshore activity.
The tea sector, a cornerstone of Sri Lanka’s export economy, faced renewed challenges in August 2025. Production decreased by 7.8 percent, following several months of uneven output. Although cumulative production from January to August recorded a slight uptick, the monthly decline raises concerns about the sector’s resilience amid fluctuating weather patterns and rising input costs.
Similarly, rubber production registered a year-on-year decrease, according to provisional data from the Rubber Development Department. Weaker output in this segment is tied to lower tapping activity and adverse weather conditions affecting plantations. This drop has potential implications for the country’s industrial sector, which relies heavily on natural rubber as a raw material.
These contrasting trends within Sri Lanka agriculture highlight the complexity of sustaining growth across multiple subsectors. While improved paddy and coconut yields strengthen food security and rural incomes, weaknesses in tea, rubber, and inland fisheries underscore the need for targeted policy support, investment in technology, and climate resilience strategies.
Economists note that stable agricultural output is critical not only for food security but also for easing import pressure and strengthening the balance of payments. As Sri Lanka navigates its economic recovery, ensuring sustainable and diversified agricultural production will be essential for maintaining rural livelihoods and boosting overall economic stability.
The central bank is expected to monitor these developments closely in the coming months, with stakeholders calling for coordinated action to address sectoral disparities. If favorable weather continues and input supplies remain stable, the island could maintain upward momentum in key agricultural areas despite external challenges.