The World Bank characterizes Sri Lanka’s post-crisis trajectory as “strong but incomplete,” with poverty rates 10% above 2019 levels and 25% of households grappling with food insecurity despite 5.4% Q3 growth. Macro indicators shine—reserves $5.2B, inflation 5.8%, debt stabilizing—but micro-level stress afflicts urban poor in Colombo slums and rural interiors where Samurdhi reaches only 1.8 million of 4 million eligible.
Agriculture’s 2.1% growth fails 4.5 million farmers facing Rs14,500 minimum wages versus Rs25,000 living costs. Health access lags: 30% rural clinics lack doctors post-cyclone. Education dropout rates hit 15% in Northern districts due to transport disruptions.
Safety nets expand via Budget 2026’s Rs10,000 transfers, but coverage gaps persist. Revenue targets (16% GDP) must prioritize progressive spending over debt service (35% revenues).
In conclusion, genuine recovery prioritizes household metrics; robust protections ensure macro gains uplift every family, preventing crisis recurrence.
References:
https://www.worldbank.org/en/news/press-release/2025/10/07/sri-lanka-s-economic-recovery-remains-incomplete-as-key-challenges-re
https://www.asiapacific.ca/publication/sri-lanka-economic-recovery-but-challenges-still-ahead
https://www.cbsl.gov.lk/en/sri-lanka-economy-snapshot
