Sri Lanka’s economy demonstrated resilience in 2024, achieving a 5% growth rate, surpassing the World Bank’s initial projection of 4.
4%. This rebound was primarily driven by robust performances in the construction and tourism sectors.​
However, the World Bank forecasts a deceleration in growth to 3.5% in 2025 and further to 3.1% in 2026. This anticipated slowdown is attributed to lingering effects from the previous economic crisis and global economic uncertainties .​
Despite the economic recovery, poverty remains a significant concern, with 24.5% of the population living below the poverty line. The World Bank emphasizes the need for comprehensive reforms to stimulate job creation, enhance economic stability, and promote inclusive growth .​
As Sri Lanka navigates these challenges, the focus remains on implementing structural reforms and policies that can sustain economic momentum and address socio-economic disparities.
