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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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Heat Index at Caution Level in the Northern, North-central and North-western provinces and in Kegalle, Trincomalee and Batticaloa districts during the day time
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 28 April 2026, valid for 29 April 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 and North-western provinces and in Kegalle,
Trincomalee and Batticaloa districts 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.
New controversy erupts over missing USD 2.5 mn:
Public interest activist Nagananda Kodituwakku has sought citizenship details of Finance Ministry Secretary Harshana Suriyapperuma from the Department of Home Affairs, Australia.
According to a letter dated 28 April, addressed to the relevant department, Solicitor England and Wales Kodituwakku sought the required information in terms of Section 15 of the Freedom of Information Act No 3 of 1982 of Australia. Suriyapperuma is also the Secretary to the Treasury.
The former Deputy Minister of Finance and Planning Suriyapperuma (from November 2024 to June 2025) is embroiled in a deepening controversy over the theft of USD 2.5 mn from the Treasury.
The leader of the Vinivida Foundation said that he intended to move court against Suriyapperuma for entering Parliament through the NPP National List in violation of the country’s Constitution (Article 91(1)(d)(xiiii).
Kodituwakku said: “This is clearly an accountability and integrity issue and violation of the Constitution of Sri Lanka and also this act contravenes the law of a member in the Commonwealth.”
USD 2.5 mn paid to a third party was meant to be an instalment of a loan taken from Australia. Suriyapperuma neither responded to an SMS nor answered his hand phone.
Geetha Kumarasinghe (UPFA/Galle District) and Diana Gamage (SJB National List) lost their seats in 2017 and 2024, respectively, over citizenship issues.
Meanwhile, public interest group ‘Free Lawyers’ that exposed the theft of Treasury funds questioned the failure on the part of Dr. Harsha de Silva, Chairman of Committee on Public Finance (CoPF), to pressure President Anura Kumara Dissanayake to temporarily remove Suriyapperuma to facilitate unhindered investigations.
On behalf of ‘Free Lawyers’, Rajith Keerthi Tennakoon yesterday expressed concern over the way the CoPF, under SJBer de Silva’s leadership, handled the issue at hand. Issuing an open letter, Tennakoon, urged the CoPF chief to explain his stand on a spate of vital issues which needed to be addressed without any further delay.
By Shamindra Ferdinando
News
President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara
President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara (Sue Tue Nhan) at the conclusion of the 161 km ‘International Peace Walk’ in Colombo yesterday. The Bo-sapling will be taken to the US by the spiritual leader. Pic by Sujata Jayaratne
Ferreira, Shubham, Rajasthan Royals openers hand Punjab Kings their first defeat
Dulani and Samarawickrama set up Sri Lanka’s victory in T20I series opener
Heat Index at Caution Level in the Northern, North-central and North-western provinces and in Kegalle, Trincomalee and Batticaloa districts during the day time
Showers or thundershowers will occur in most parts of the island after 1.00 pm
Treasury chief’s citizenship details sought from Australia
President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara
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