Sri Lanka regional economic disparities narrowed in 2024 as provinces outside the Western Province increased their contribution to national output, according to new Provincial Gross Domestic Product data released by the Central Bank of Sri Lanka.
Sri Lanka regional economic disparities ease as provinces expand GDP share
Sri Lanka’s economic landscape showed signs of improved regional balance in 2024, with fresh data indicating that growth outside the traditionally dominant Western Province gathered pace. While the Western Province continued to lead the national economy, its relative share eased as other regions strengthened their contribution to overall output, according to the Central Bank of Sri Lanka.
Provincial Gross Domestic Product estimates compiled by the Central Bank’s Statistics Department reveal that the Western Province accounted for 42.4 percent of Sri Lanka’s nominal Gross Domestic Product in 2024. Although this maintained its position as the country’s primary economic engine, the combined share of the remaining eight provinces increased compared with the previous year, signalling a gradual narrowing of long-standing regional imbalances.
Sri Lanka’s nominal GDP reached Rs. 29,899 billion in 2024, reflecting a year of cautious recovery amid stabilising macroeconomic conditions. Within this total, the North Western Province emerged as the second-largest contributor, accounting for 11.5 percent of economic output, followed closely by the Central Province at 10.7 percent. These rankings underscore the growing importance of regions beyond the Western Province in sustaining national growth.
Notably, the Central Bank observed that several provinces recorded year-on-year increases in their contribution to nominal GDP. The Central, Eastern, North Western, Sabaragamuwa and Uva provinces all expanded their economic share in 2024 compared with 2023. This trend highlights a more geographically distributed recovery, supported by agriculture, industry and services across multiple regions.
Agriculture remained a critical driver of provincial economies, with the North Western Province retaining its status as the leading contributor to national agricultural activity. In 2024, the province accounted for 20.0 percent of total agricultural output, reflecting its strong performance in food production and related activities. The Central Province followed with a 13.9 percent share, while the Southern Province contributed 11.8 percent, reinforcing the sector’s importance beyond the Western Province.
In nominal GDP terms, the Central and North Western provinces ranked as the second and third highest contributors to the national economy. This positioning reflects not only agricultural strength but also expanding industrial and services-based activities that have supported broader provincial growth.
Industrial activity continued to be heavily concentrated in the Western Province, which accounted for 47.6 percent of the total industry value added in 2024. This dominance reflects the province’s concentration of manufacturing, construction, logistics and export-oriented industries. However, other regions also maintained notable industrial contributions, with the North Western Province accounting for 12.0 percent and the Central Province contributing 9.6 percent of overall industry output.
Services activity, a key pillar of Sri Lanka’s economy, showed a similar but slightly more diversified pattern. The Western Province led services output with a 44.5 percent share in 2024, supported by finance, trade, transport and professional services. The Central Province followed with a 10.7 percent contribution, while the North Western Province accounted for 10.1 percent, indicating the gradual spread of service-sector growth across regions.
Economists note that the easing of Sri Lanka regional economic disparities reflects structural shifts supported by infrastructure investment, regional connectivity, and targeted development initiatives. Improved access to markets, logistics networks and digital services has enabled provinces outside the Western corridor to capture a larger share of economic activity.
While the Western Province remains indispensable to Sri Lanka’s growth trajectory, the 2024 data suggest a more balanced provincial contribution than in previous years. Sustaining this momentum, analysts argue, will depend on continued policy support for regional industries, agricultural modernisation and service-sector expansion in emerging provincial hubs.
The Central Bank’s latest figures therefore offer cautious optimism that Sri Lanka’s economy is becoming more geographically inclusive. As provincial contributions continue to diversify, narrowing regional gaps could strengthen economic resilience and promote more equitable development in the years ahead.