Banking and Finance

World Bank Outlook 2026: SL growth to decline to 3.5%

Sri Lanka’s economic growth is expected to slow down over the next two years, the World Bank said in its latest Global Economic Prospects – January 2026 report.

The World Bank projects Sri Lanka’s real GDP growth to ease to 3.5% this year and 3.1% in 2027, following an estimated growth of 4.6% in 2025. The report attributes the expected slowdown to structural weaknesses in markets, lingering effects of the economic crisis, and weaker external demand driven by global uncertainty.

Despite these challenges, Sri Lanka’s external position has improved, supported by strong remittance inflows and a recovery in tourism, which have helped strengthen foreign reserves and the current account.

The World Bank also forecasts Sri Lanka will continue to record a current account surplus, supported by lower global oil prices and resilient remittances, particularly from Gulf countries.

Source - The Morning