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WB: Lankan economy shows remarkable recovery in 2024
Sri Lanka’s economy has made a remarkable recovery in 2024, surpassing growth expectations by recording 5 percent growth, compared to the projected 4.4 percent, says the World Bank. This growth has been driven by strong performances in industry and services, particularly in construction and tourism-related services.
According to the report in 2025, growth is expected to moderate to 3.5 percent reflecting scarring effects of the crisis and structural impediments to growth, amid global headwinds and unprecedented trade policy uncertainty.
Released on Wednesday (23), the World Bank’s bi-annual Sri Lanka Development Update, titled Staying on Track, highlights that despite the positive growth and fiscal performance, significant challenges remain. While the economy is recovering, many Sri Lankans are still struggling. 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 according to the report. The labor market continues to struggle, leading to increased emigration as people look for opportunities abroad.
“While Sri Lanka’s economy is bouncing back stronger than expected, a significant portion of the population—about a third—remains in poverty or is at risk of falling back into poverty,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka. “To ensure this recovery works for everyone, especially those who have been hit hardest, Sri Lanka can focus on policies that create jobs and support the poor.”
The report underscores that medium-term growth and poverty reduction depend on maintaining macroeconomic stability and implementing key structural reforms amid an increasingly uncertain global environment. The World Bank forecasts moderate growth of around 3.1 percent for Sri Lanka in 2026.
Shifting to a higher growth trajectory through the successful implementation of reforms that enhance trade, investment, competition and female labor force participation, among others, is essential to ensure that all Sri Lankans benefit from the recovery. Looking ahead, the World Bank emphasizes the continued need for policy reforms to maintain macro-fiscal and financial stability, boost competitiveness, increase productivity, and expand job opportunities.
The Sri Lanka Development Update is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia region and analyzes policy challenges countries face. The April 2025 edition, Taxing Times, projects regional growth to slow to 5.8 percent in 2025—0.4 percentage points below October projections—before ticking up to 6.1 percent in 2026.
This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities including constrained fiscal space. It includes a special chapter analyzing the state of domestic resource mobilization in the region. Despite often higher tax rates, the region’s tax revenues remain below the average for emerging markets and developing economies. The report outlines how countries can address inefficiencies in tax policy and administration to increase revenues so they can enhance resilience amid an increasingly challenging global economic environment.
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“Let’s move forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails” -PM
Prime Minister Dr Harini Amarasuriya in her May Day message called upon the working people in Sri Lanka to move forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails.
The full text of the PM’s message:
The history of the Sri Lankan labour movement is a remarkable journey, shaped over decades by the blood, sweat, and sacrifices made in the pursuit of rights, justice, and dignity.
Beginning with the printers’ strike of 1893, the working people of this country emerged as an organised force. Through the trade union movement led by A. E. Goonesinha and the emergence of the Lanka Sama Samaja Party, the voice of labour gained political strength. The Railway Workers’ Strike of 1923 and the public service strike of 1947 reaffirmed that the true ’driving force’ behind the country’s economic and social transformation was its working people. I respectfully acknowledge the invaluable contributions of workers in the plantation sector, ports, railways, and across both the public and private sectors, whose dedication laid the foundation for many of the labour rights we benefit from today.
As we commemorate International Workers’ Day with dignity once again, we pay tribute to all working people across the world, including the heroic workers who sacrificed their lives in the struggle for an eight-hour workday in Chicago in 1886. This year’s May Day holds special significance as it is being celebrated under a government built through the power of the people, in honour of the entire working community of Sri Lanka.
Granting due respect to labour and safeguarding the rights of all working people are core policy commitments of our government. Accordingly, we remain dedicated to creating a fair and safe working environment by expanding existing services and implementing new programmes aimed at improving the living standards of working people.
Ensuring fair and equal access for all citizens is a fundamental objective of the government. Following that, it is our responsibility to create an environment in which everyone can lead a dignified professional life. Establishing a national social protection system that recognises unpaid labour and guarantees social security for unpaid labours is among the foremost priorities of our government.
On this May Day, we must reaffirm the importance of moving forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails. With the strength and dedication of all working people, may we soon achieve the vision we all share: “A Thriving Nation – A Beautiful Life
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Heat Index at Caution Level at some places in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Monaragala district during the day time
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 30 April 2026, valid for 01 May 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, Eastern, Sabaragamuwa, and North-western provinces and in Monaragala district during the day time.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
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USD 2.5 mn fraud probe: Interdicted MoF official found dead at home
An Assistant Director of the External Resources Department (ERD) of the Ministry of Finance, interdicted pending an investigation into the diversion of US$2.5 million in Treasury funds to a rogue account was found dead at his residence in Kuliyapitiya.
The deceased has been identified as Ranga Nishantha, 50.
Police said the officer had been found in the garden of his house and they believed that the officila had committed suicide. However, investigators have not ruled out other possibilities, and inquiries are continuing.
The official was interdicted along with three other senior Finance Ministry officials over a cyber-enabled financial fraud.
Those interdicted include a Director and an Assistant Director from the ERD, as well as a Director and an Additional Director General from the Public Debt Management Office (PDMO).
Police sources said that the CID had on two occasions asked Nishantha to make a statement in connection with the ongoing investigation, but he had failed to comply.
Police said the CID probe into the alleged cyber fraud is continuing, with investigators examining the circumstances surrounding the diversion of funds through compromised communication channels.Kuliyapitiya Police said further investigations were underway to establish the exact cause of death.
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