COLOMBO, Oct. 7 -- Sri Lanka's economy has rebounded from its worst crisis in decades, but the recovery remains fragile and incomplete, with poverty levels still double their pre-crisis rates and economic output below 2018 benchmarks, the World Bank cautioned in a stark assessment released Tuesday (7).

The warning comes as the international financial institution projects modest growth of 4.6% for 2025, driven by a rebound in industry and steady services expansion, before slowing to 3.5% in 2026 - a trajectory the bank says remains vulnerable to both global economic uncertainty and persistent domestic structural weaknesses.

"While Sri Lanka's recent economic progress is encouraging, the recovery is uneven and incomplete," said David Sisl...