World Bank warns of slowdown in Sri Lanka’s economic growth

Despite Sri Lanka’s recent strong economic performance, the recovery of the Sri Lankan economy remains incomplete, the World Bank said. Accordingly, the World Bank has indicated that economic growth is still below pre-crisis levels.

The World Bank said this in a new report on Sri Lanka’s Development Update.

Issuing a press release regarding the contents of this report, the World Bank said that continued macroeconomic stability, rapid structural reforms and more efficient, better-targeted public spending will be required to strengthen Sri Lanka’s recovery.

According to the latest Sri Lanka Development Update report released today (07), Sri Lanka’s economic growth is expected to slow to 3.5% in 2026, from 4.6% in 2025.