Colombo, Oct. 7 -- Sri Lanka's recent economic performance has shown strong progress, but the country's recovery remains incomplete, with growth still lagging behind pre-crisis levels and poverty remaining significantly high, according to the latest Sri Lanka Development Update released by the World Bank today.

Titled Better Spending for All, the report projects Sri Lanka's economy to grow by 4.6 percent in 2025, supported by a modest rebound in industry and steady growth in services, before easing to 3.5 percent in 2026. However, it cautions that this outlook faces elevated risks due to global economic uncertainty.

"While Sri Lanka's recent economic progress is encouraging, the recovery is uneven and incomplete," said David Sislen, Wor...