Sri Lanka’s economy has returned to pre-crisis levels, but the recovery remains incomplete and uneven, according to the World Bank Group’s latest Sri Lanka Development Update.

The World Bank projects Sri Lanka’s GDP to grow by 4.4% this year, driven by strong industry performance and steady growth in services.

The economy expanded for 12 consecutive quarters, with real GDP increasing 4.7% in the first half of 2026 and returning to 2018 levels.

However, poverty remains above pre-crisis levels at 16.9%, while inflation has increased in recent months due to higher energy and food prices.