Sri Lanka’s battered economy is gradually recovering, according to a recent World Bank report, and the island nation has reclaimed “upper-middle-income” status after years of financial turmoil. The upgrade marks a significant milestone following the severe economic crisis the country faced in 2022, the report says.
The World Bank’s update notes that Sri Lanka is not alone: Vietnam, the Philippines, Jordan and the Federated States of Micronesia have also moved from lower-middle-income to upper-middle-income classifications, reflecting broad improvements in income levels across several developing economies.
Key drivers of Sri Lanka’s reclassification include a 5 percent real GDP growth rate in 2025 and an 11.2 percent rise in total national income. The World Bank attributes the gains to increased economic activity, falling inflation and a more stable exchange rate, which together pushed the country’s GNI per capita above the threshold for upper-middle-income status.
The report also highlights a contrast with India. Despite being one of the world’s fastest-growing major economies and the fourth-largest by total GDP, India remains classified as a lower-middle-income country in the World Bank’s update. The reason, the World Bank emphasizes, is that its rankings are based on GNI per capita rather than total GDP.
Because India’s total income is spread across a population of more than 1.4 billion people, average income per person still sits below the upper-middle-income cutoff. That distributional effect helps explain why a large economy can remain in a lower per-capita income bracket.
Economists quoted in the report say that if India’s economic growth consistently outpaces population growth and GNI per capita continues to rise, the country could attain upper-middle-income status within the next decade.
Original Source: https://assam.nenow.in/world-bank-ranking-indicates-sri-lankans-now-richer-than-indians/
Category: অসম,আন্ত: ৰাষ্ট্ৰীয়,উত্তৰ-পূব,দেশ,শীর্ষ সংবাদ
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Publish Date: 2026-07-05 15:27:00
