World Bank Projects 4.4% GDP Growth for Sri Lanka Exceeding Earlier Projections

COLOMBO (News 1st); The World Bank's latest Sri Lanka Development Update projects Sri Lanka's GDP to grow by 4.4% this year, exceeding earlier projections, driven by strong industry performance steady growth in services

It also noted that Despite the macroeconomic recovery, many households have yet to regain the living standards lost during the crisis. Poverty is projected to fall to about 14 percent, but remain above pre-crisis levels.

According to the development update, Headline inflation is also expected to remain elevated at 5.7 percent (year average) in 2026 before easing gradually to the 5.0 percent inflation target by 2028. In 2026, the effects of higher energy prices and a weaker rupee are expected to continue to percolate through the economy.