Sri Lanka

Sri Lanka – February 2022

Sri Lanka remains a lower-middle-income country; GDP per capita is below the average for emerging Asian countries. Measures of the business climate, growth and creditworthiness are also below the regional average. Public debt and balance of payments problems, political risks, security and geopolitical issues and environmental risks all remain prominent challenges. Amid these challenges, a highly literate population, diversified economy and moderately strong institutions support robust growth and investment potential.

The above chart is a cobweb diagram showing how a country measures up on four important dimensions of economic performance—per capita income, annual GDP growth, business climate rank and creditworthiness. Per capita income is in current US dollars. Annual GDP growth is the five-year average forecast between 2022 and 2026. Business climate is measured by the World Bank’s latest Ease of Doing Business ranking of 190 countries. Creditworthiness attempts to measure a country's ability to honour its external debt obligations and is measured by its OECD country credit risk rating. The chart shows not only how a country performs on the four dimensions, but how it measures up against other countries in the region.