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World Bank downgrades Sri Lanka to lower-middle income country

The World Bank has downgraded Sri Lanka from an upper-middle income country to a lower-middle income country.

The change in classification comes in the World Bank country classifications by income level: 2020-2021 report.

Sri Lanka is among ten economies that are moving to a different category this year and is one of three countries that are moving to a lower category from the previous year.

Algeria and Sudan are the other two countries that have shifted to  a lower category along with Sri Lanka.

The World Bank assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high-income countries. The classifications are updated each year on July 1 and are based on GNI per capita in current USD (using the Atlas method exchange rates) of the previous year (i.e. 2019 in this case).