Sri Lanka, July 3 -- Sri Lanka's economic recovery has reached a significant milestone, with the World Bank Group reclassifying the country as an upper-middle-income economy in its latest annual country income classifications released on Wednesday.

The upgrade underscores the steady progress, Sri Lanka has made since the unprecedented economic crisis of 2022, highlighting the success of ongoing stabilisation measures and reforms. Just three years after experiencing one of the worst economic downturns in its history, the country recorded 5 percent real GDP growth in 2025, supported by a strong rebound in industrial activity and sustained expansion in the financial and tourism sectors.

"Sri Lanka is a story of recovery. Just three years a...