Sri Lanka’s financial services activity, except insurance and pension funding and auxiliary financial services, expanded by 13.2% in the third quarter, due to an increase in loans and deposits, the Department of Census and Statistics’ Gross Domestic Product by Production report for Q3 of 2025 said.

Between July and September, loans taken out increased by 16.8% and deposits increased by 13.4%. Collectively, the indicators contributed to a 13.2% growth in the financial sector, during the quarter.

Further, the Average Weighted Lending Rate (AWLR) decreased from 12.1 in year-on-year terms in the third quarter of 2024 to 11.4 in the third quarter of 2025. At the same time, Average Weighted Deposit Rate (AWDR) also decreased from 7.7 in the third quarter of 2024 to 6.7 in the third quarter of 2025.

In insurance, reinsurance and pension funding (excluding social security activity) saw gross premium earned increase by 22.6% and gross claims incurred increase by 22.7%, in the third quarter. 

After adjusting for price changes and pension funding, these two indicators collectively contributed to the 18% reported growth in insurance services for the third quarter.

Real estate activity, which includes home ownership, saw a 3.5% growth in the quarter, compared to the same quarter in 2024, with Rs. 132,515 million in value added at constant prices. The combined turnover of nineteen listed real estate companies on the Colombo Stock Exchange (CSE) increased by 24.1%, from the same quarter in 2024.

The Sri Lankan Economy grew by 5.4% in Q3 2025 compared to 5.3% growth in Q3 2024. According to Weekly Economic Indicators released by the Central Bank, total outstanding market liquidity was a surplus of Rs. 65.92 billion by 19 December, compared to a surplus of Rs. 106.77 billion by the end of the previous week.

By 19 December, the All Share Price Index (ASPI) decreased by 1.60% to 22,149.09 points and the S&P SL 20 Index decreased by 0.67% to 6,056.54 points, compared to the index values of the previous week.