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Sri Lanka’s Economic Recovery Remains Incomplete as Key Challenges Remain – World Bank

Sri Lanka’s recent economic performance has been strong. Despite this, the recovery remains incomplete, with growth still below pre-crisis levels and poverty significantly elevated. Strengthening the recovery will require continued macroeconomic stability, urgent structural reforms, and more efficient, better-targeted public spending, says the World Bank. Released today, the latest Sri Lanka Development Update, Better Spending for All, projects Sri Lanka’s economy to grow by 4.6 percent in 2025 — supported by a modest rebound in industry and steady growth in services — before slowing to 3.5 percent in 2026. This outlook is subject to heightened risks, including from elevated global…

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