📈 World Bank Upgrades Sri Lanka to Upper Middle-Income Status

The World Bank Group has officially reclassified Sri Lanka as an upper middle-income country, marking a major milestone in the island’s economic recovery following its recent financial crisis. • Overall Figures & Growth: The upgrade follows a strong economic rebound in 2025, where Sri Lanka registered a 5% real GDP growth. This expansion follows a prolonged period of economic contraction and intense macroeconomic adjustments. • The Classification Process: The World Bank updates its income groupings annually based on Gross National Income (GNI) per capita using the Atlas methodology. The thresholds are adjusted yearly to account for global inflation. • National Context: While the transition from the lower middle-income category signals a strengthening of national income levels and economic fundamentals, the World Bank notes that these groupings are for analytical and operational purposes and do not fully reflect overall development levels.