According to the latest country income classifications released by the World Bank Group on 1 July 2026, Sri Lanka has been upgraded from a Lower-Middle-Income Country to an Upper-Middle-Income Country.
The updated classification covers 218 economies. Alongside Sri Lanka, Jordan, Micronesia, Philippines and Vietnam have also moved from the lower-middle-income category to the upper-middle-income category. Meanwhile, Togo has advanced from the low-income category to the lower-middle-income category.
The World Bank noted that, although these countries crossed the same income threshold, each followed a distinct economic path.
Sri Lanka’s reclassification reflected its recovery from the severe economic crisis of 2022, with real GDP expanding by 5 per cent in 2025, supported by a rebound across industries and growth in the financial and tourism sectors.
Viet Nam’s progress was driven by export-led growth, the Philippines benefited from broad-b