Colombo, June 14 -- Sri Lanka's economic growth is forecast to decelerate to 3.5 per cent this year, reflecting the scarring effects of the crisis, structural impediments to growth, and heightened global economic uncertainties, according to the World Bank.

Economic growth is expected to drop further in 2026 and 2027 to 3.1 per cent.

The World Bank's latest Global Economic Prospects report states that, after unexpectedly weak growth of 6 per cent in 2024, activity in South Asia is decelerating amid rising global trade barriers, heightened policy uncertainty, and financial market volatility.

India is projected to grow at 6.3 per cent in 2025/26. The forecast has been downgraded by 0.4 percentage points relative to the January projections...