Sri Lanka upgraded to upper-middle income economy by World Bank

The World Bank has upgraded Sri Lanka from a lower-middle-income to an upper-middle-income economy in its latest income classification released on 1 July 2026.

• The reclassification follows Sri Lanka’s 5% economic growth in 2025, marking a significant recovery after the country’s severe economic crisis in 2022.

World Bank Income Classification

• Every year on 1 July, the World Bank Development Data Group updates the income classification of economies based on the previous year’s Gross National Income (GNI) per capita.
• Countries are classified into four income groups:
  • Low-income
  • Lower-middle-income
  • Upper-middle-income
  • High-income

Income Classification (FY 2027)

Income Group	GNI per capita (Atlas Method)
Low-income	US$ 1,175 or less
Lower-middle-income	US$ 1,176 – 4,635
Upper-middle-income	US$ 4,636 – 14,375
High-income	Above US$ 14,375

Gross National Income (GNI)

• Gross National Income (GNI) is the total income earned by a country’s residents and businesses, including income received from abroad.
• GNI per capita is obtained by dividing the country’s GNI by its total population and is expressed in US dollars.
• The World Bank calculates GNI per capita using the World Bank Atlas Method, which smooths exchange-rate fluctuations to enable consistent international comparisons.

Source: World Bank

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