Sri Lanka’s economic growth to slow down in 2026 and 2027: World Bank

Sri Lanka’s economic growth is expected to slow down in 2026 and 2027, according to the World Bank’s latest projection.

The World Bank in its latest Global Economic Prospects – January 2026 report noted that Sri Lanka’s GDP is expected to grow by 3.5 percent in 2026 and 3.1 percent in 2027.

According to the World Bank, Sri Lanka’s estimated growth is 4.6 percent 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.

The World Bank’s Global Economic Prospects states the projected slowdown in growth in Sri Lanka primarily reflects inefficiencies in factor and product markets, as well as the effects of the economic crisis.

Meanwhile, the global economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, according to the World Bank’s latest Global Economic Prospects report.

Global growth is projected to remain broadly steady over the next two years, easing to 2.6 percent in 2026 before rising to 2.7 percent in 2027, an upward revision from the June forecast.

The resilience reflects better-than-expected growth—especially in the United States, which accounts for about two-thirds of the upward revision to the forecast in 2026, the World Bank noted.