Sri Lanka, Oct. 7 -- Sri Lanka's economy reached a significant milestone, reaching pre-crisis levels. But the recovery remains incomplete and uneven, with household incomes and labor market outcomes still lagging the broader economic rebound, says the World Bank Group in its twice-yearly economic outlook.

Released yesterday, the latest Sri Lanka Development Update, From Recovery to Transformation, projects Sri Lanka's GDP to grow by 4.4% this year, exceeding earlier projections, driven by strong industry performance and steady growth in services.

Growth is projected to slow to 4.2% in 2027 as the post-crisis rebound fades and productivity remains weak. Heightened downside risks, including prolonged volatility in global energy markets an...