The island nation’s economy had grown 4.9% in the preceding quarter.

“Sri Lanka’s agriculture sector grew by 3.6% in Q3 from a year earlier, while industrial output expanded by 8.1%, and services grew by 3.5%,” the census and statistics department said in a statement.

The island nation, which was emerging from the worst economic crisis in decades that peaked in 2022, is reeling from a severe cyclone that hit in late November.

Cyclone Ditwah left 643 people dead and, at its peak, affected nearly 10% of the 22 million population.

Floods caused by torrential rain damaged crucial infrastructure and the island’s agriculture sector, authorities said.

Growth is projected at 4.5% this year by the central bank but analysts say growth could slow to about 3% in 2026 due to Ditwah.

“We are expecting a 0.5%-0.7% contraction in the economy due to the cyclone.

“The impact will be tempered as reconstruction spending, which could be about US$2 billion, will also drive growth next year,” said Shehan Cooray, head of research at HNB Stockbrokers.

Sri Lanka, which is already under a four-year, US$2.9 billion programme from the International Monetary Fund (IMF), has sought US$200 million in emergency funds from the global lender.

The IMF expects the Sri Lankan economy to grow 3.1% in 2026.

An IMF team will visit in January for a fresh assessment before releasing the sixth tranche of the original programme.

The World Bank is making up to US$120 million in emergency support available by repurposing funds from ongoing projects.

“This will support recovery and help restore essential services and infrastructure-including health care, water, education, agriculture, and connectivity-in the areas hit hardest by the cyclone,” it said in a statement.