Sri Lanka’s economic growth slowed to 4.2 per cent in the second quarter, the statistics office says, as the country grapples with fuel shortages and a tourism slump triggered by the Middle East conflict, AFP reports.

Import-dependent Sri Lanka has raised fuel prices by about 50pc as the war, which broke out in February, caused a surge in global energy costs.

Growth in April to June had slowed compared to this year’s first quarter, when the figure was at 5.1pc, as well as year-on-year, down from 5pc during the same period in 2025.

“The second quarter started with a somewhat gloomy outlook given the escalating tensions in the Middle East,” the statistics office says in a statement.

“That uncertainty mainly shaped economic activity… with a shortage of crude oil supply. Moreover, the adverse effects were more visible through subdued tourism performance.”