Sri Lanka's poverty alarmingly high: World Bank

Colombo: About a quarter of cash strapped Sri Lanka s population was living in poverty despite the economy making a remarkable recovery from its wor...

Colombo: About a quarter of cash-strapped Sri Lanka's population was living in poverty despite the economy making a "remarkable recovery" from its worst financial meltdown, the World Bank said on Wednesday.

The South Asian nation's growth surpassed the Bank's forecast of 4.4 percent, recording 5.0 percent in 2024 -- the first economic expansion since the 2022 crisis.

"While the economy is recovering, many Sri Lankans are still struggling... the poverty rate remained alarmingly high at 24.5 percent in 2024," the Bank said in its latest update on the island.

"The labour market continues to struggle, leading to increased emigration as people look for opportunities abroad. Household incomes, employment and overall welfare remain well below pre-crisis levels."

The Bank said wages have yet to catch up to their 2019 levels. Since then, poverty -- measured by those earning less than $3.65 a day -- has doubled.