The World Bank Group has reclassified Sri Lanka as an Upper Middle Income country, moving it up from Lower Middle Income status following a reported 5% real GDP growth in 2025.

The classification change places Sri Lanka among economies with higher income levels, reflecting recent improvements in macroeconomic performance and growth momentum after a period of economic stress.

The World Bank Group uses four income categories to classify countries: High Income, Upper Middle Income, Lower Middle Income, and Low Income. These classifications are based on gross national income per capita and are updated annually.

Sri Lanka’s upgrade marks a notable shift in its economic standing within this global framework, following the rebound in growth recorded in 2025. 

The Coconut Development Authority says Sri Lanka’s coconut export revenue has increased by 21 percent during the first five months of this year compared to the same period last year.

Chairman of the Coconut Development Authority, Shantha Ranatunga said the increase was driven by the adoption of alternative export methods in response to Middle East conflicts that have disrupted key shipping routes.

He noted that exporters were encouraged to use air freight to export coconut and king coconut, helping maintain export volumes despite maritime transport challenges.

Sri Lanka’s leading exporters have endorsed the Government’s ambitious plan to boost exports to $ 36 billion by 2030, but warned that success will hinge on policy consistency, stronger global market access, supply chain reforms, and a decisive shift towards premium, value-added products rather than competing on volume.

Speaking at a panel discussion during the launch of the National Export Development Plan (NEDP) 2026-2030, Dilmah Ceylon Tea Company Chairman Dilhan C. Fernando and CEAT Kelani Holdings Ltd., Managing Director/CEO Ravi Dadlani outlined that Sri Lanka’s export future lies in leveraging quality, sustainability, and innovation rather than attempting to emulate manufacturing giants such as Vietnam and India.

Fernando said the country already possesses most of the ingredients required to achieve the NEDP’s ambitious export targets, but stressed that Sri Lanka must build its strategy around its unique strengths.

“Sri Lanka must recognise that its competitive advantage is different from countries such as Vietnam. Our focus should be on value rather than volume,” he said.

He pointed to products such as Ceylon Tea, Ceylon Cinnamon, and Ceylon Cashew, arguing that the country’s export success will depend on premium positioning, branding, and quality differentiation rather than price competition.