As the World Bank has highlighted, maintaining upper-middle status requires not just recovery momentum but deep structural reforms to drive sustainable, inclusive growth.
The government has projected growth of around 4 per cent for the next fiscal year, while aiming to keep inflation under control and continue fiscal consolidation.
Sri Lanka has successfully navigated its way out of the darkest days of sovereign default, rebuilding a foundation of stability. However, as the World Bank’s latest assessment makes clear, this recovery remains deeply uneven.
The transition will require careful policy planning to ensure that the gains achieved over decades are not undermined by sudden changes in trade and development frameworks.
The failure of the monsoon to bring safe air to the majority of cities in July 2026 is a reminder that clean air remains a distant goal for most urban Indians.