Sri Lanka, Oct. 7 -- 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 uncertainty.
"While Sri Lanka's rece...