The World Bank says that Sri Lanka’s economy has made a remarkable recovery in 2024, recording a growth rate of 5 percent, surpassing the WB’s projected 4.4 percent.
In a statememt on Wednesday (23), the World Bank said that this growth has been driven by strong performances in industry and services, particularly in construction and tourism-related services.
However, the World Bank forecasts that growth will moderate to 3.5 percent in 2025 due to the lingering effects of the crisis and structural impediments to growth, amid global headwinds and unprecedented trade policy uncertainty.
The World Bank’s bi-annual Sri Lanka Development Update, titled “Staying on Track,” was released today (23).
Despite the positive growth and fiscal performance, the report highlights significant challenges that remain.
While the economy is recovering, many Sri Lankans are still struggling, reported the World Bank adding that household incomes, employment, and overall welfare are still well below pre-crisis levels, and the poverty rate remained alarmingly high at 24.5 percent in 2024.
It went on to note that the country’s labor market continues to struggle, leading to increased emigration as people look for opportunities abroad.
