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COLOMBO: Sri Lanka’s economy grew by 1.6% in the quarter from July to September for the first time in six quarters, official data showed on Friday, as the crisis-hit nation claws its way back towards stability.

The expansion was the first since the end of 2021, before Sri Lanka plunged into its worst financial crisis in more than seven decades, triggered by a record fall in foreign exchange reserves.

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The upturn was driven by a lower base, moderating inflation, a strengthening currency and lower interest rates, the Census and Statistics Department said in a statement.

The agriculture sector grew 3% from a year earlier, with an increase of 0.3% percent in output from industries, while services grew by 1.3%, the department said.

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