Sri Lanka economic growth is forecast at 3.6% in 2026, with the World Bank warning of uncertainty, costs, and global pressure.
Sri Lanka economic growth is projected to reach 3.6 percent in 2026, according to the World Bank Group’s latest Global Economic Prospects report for June 2026.
The report provides fresh insight into the economic direction of both Sri Lanka and the wider global economy at a time of rising international uncertainty.
According to the World Bank, Sri Lanka’s economic growth forecast for 2026 remains unchanged at 3.6 percent, the same figure projected by the institution in April.
The report further states that Sri Lanka’s economic growth is expected to rise to 3.8 percent in 2027 and 3.9 percent by 2028.
World Bank data shows that Sri Lanka recorded economic growth of 5.0 percent in both 2024 and 2025.
However, recent data released by the Department of Census and Statistics showed that Sri Lanka’s economy grew by a higher 5.1 percent during the first quarter of 2026.
Commenting on the global outlook, the World Bank Group noted that growth forecasts for two-thirds of economies worldwide have been downgraded since January.
The hardest impact, according to the report, has fallen on developing economies.
The slowdown in global economic growth has been driven mainly by rising food and energy prices, fuel shortages linked to conflicts in the Middle East, and shortages in agricultural production.
On Sri Lanka, the World Bank said the downward revision of growth expectations reflects uncertainties within the country and high production costs.
It also warned that these conditions could negatively affect future investment.
Nevertheless, the World Bank said Sri Lanka’s revenue collection process is expected to continue progressing strongly.
As a result, the report indicated that Sri Lanka is expected to maintain a sustained primary account surplus in the future.
