The World Bank has praised Sri Lanka’s economic performance in 2024, noting that the country exceeded expectations with a growth rate of five per cent driven by strong performances in industry and tourism. In its latest Sri Lanka Development Update, the Bank acknowledged the country’s efforts to stabilize its economy through critical policy and structural reforms.
Looking ahead, Sri Lanka’s GDP is projected to grow by 3.5 per cent in 2025, a forecast unchanged from October 2024. The World Bank, however, cautioned that this recovery remains fragile. Sustained progress will depend on successful debt restructuring, fiscal discipline, and continued reforms aimed at boosting exports and investment.
As per the Bank, poverty remains a pressing concern, with 24.5 per cent of the population still below the poverty line. The Bank highlighted the need for reforms to improve female labor force participation, raise productivity, and ensure more inclusive growth.