SL loses footing in per capita income status

Sri Lanka is among three countries whose World Bank classification by income has been downgraded this year. The other two are Algeria and Sudan.

Sri Lanka's per capita which fell to US$4020 in 2020 from $4060 in 2019 has been downgraded to “Lower-middle income” status from ‘ Upper- middle income” status, according to the July 1 new World Bank country classifications by income level for 2020-2021.

In a June 21, 2020 article titled “Sri Lanka has become a poorer nation”, Business Times columnist Prof. Sirimal Abeyratne predicted that with falling income levels in the economy, the country would have slipped away from its “upper- middle income” status back to the “lower-middle income” status (this year). He said it was only last year on July 1 that the World Bank declared that Sri Lanka has graduated from lower-middle to upper-middle income category. Now the country is back to the pre-July 2019 level.