World Bank says Sri Lanka’s economic recovery incomplete; poverty levels still high

► WB CONTINUES TO EMPHASISE THAT INCREASE IN POVERTY HAS BEEN A MAJOR CHALLENGE FOR SRI LANKA ▸ ABOUT ONE-THIRD OF POPULATION CURRENTLY LIVING IN OR AT RISK OF POVERTY

- By SHANNINE DANIEL

Despite Sri Lanka's recent strong economic performance, the country's poverty levels remain significantly high, according to the World Bank's latest development update, Better Spending for All.

The report notes that although Sri Lanka has experienced robust economic growth, low inflation and strong external inflows, the food prices have remained high. Poverty, while declining, is still twice as high as it was in 2019.

The World Bank projected a decline in the poverty rate from last year's 24.9 percent to 22.4 percent this year, supported by economic growth, higher wages and low inflation, even though the food prices are expected to remain elevated.

However, the report highlights that vulnerability to falling into poverty remains high, with a further 10 percent of the population living just above the poverty line.