The World Bank has reclassified Sri Lanka as an Upper-Middle Income Economy in its latest country income update released on July 1.

The World Bank said Sri Lanka recorded 5% GDP growth in 2025, driven mainly by manufacturing, industry, tourism and financial services, marking a recovery after the 2022 economic crisis.

Income classifications are updated annually based on Gross National Income (GNI) per capita and are used to assess global economic status and development eligibility.