The World Bank has downgraded Sri Lanka to a lower income country in its recent classification report. Just a year ago Sri Lanka was upgraded to an upper-middle-income country by the World Bank. The recent classification was announced by the New World Bank country classifications by income level: 2020-2021 report released on Wednesday (01).
Sri Lanka is among the three economies that have been downgraded to a lower category this year while seven countries are moving to a higher category from the previous year. Algeria and Sudan are the other two countries that have been downgraded along with Sri Lanka.
The World Bank assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high-income countries.