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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsFor the World Bank’s FY2027 cycle (July 1, 2026 to June 30, 2027), India is classified as a lower-middle-income economy and Sri Lanka as an upper-middle-income economy. The idea that the two share a income group no longer holds. Sri Lanka’s 2025 gross national income (GNI) per capita of $4,670 sits just above the $4,636 entry point for upper-middle-income, a margin of $34. India’s $2,760 keeps it in the lower-middle band.
How the World Bank sorts economies
The World Bank groups economies by GNI per capita, converted into current US dollars using the Atlas method. Each economy falls into one of four bands: low income, lower-middle income, upper-middle income, or high income. Assignments are made on July 1 each year and use the previous calendar year’s estimate. The FY2027 classification therefore relies on 2025 figures. Once the classification is set for a fiscal year, it stays in place for that year even if the underlying historical estimates are revised later.
Two points follow from this design. First, the measure is national income per person, not GDP per capita and not total economic size, so a large economy can sit in a lower band than a smaller one. Second, the label is an annual comparison category. It describes where an economy’s average income falls on the scale in a given year and says nothing more by itself.
FY2027 income bands
The thresholds below are the World Bank’s published FY2027 bands, based on 2025 Atlas-method GNI per capita. They are listed on the World Bank’s country and lending groups page.
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| Income group (FY2027) | 2025 Atlas GNI per capita | Which of the two countries falls here |
|---|---|---|
| Low income | $1,175 or less | Neither |
| Lower-middle income | $1,176 to $4,635 | India ($2,760) |
| Upper-middle income | $4,636 to $14,375 | Sri Lanka ($4,670) |
| High income | Above $14,375 | Neither |
Where India and Sri Lanka sit
The figures below come from World Bank Open Data for 2025 Atlas GNI per capita. The distance columns are calculations from those reported values and the published band limits, not separately published World Bank statistics.
| Country | 2025 Atlas GNI per capita | FY2027 group | Distance from the upper-middle entry line ($4,636) |
|---|---|---|---|
| India | $2,760 | Lower-middle income | $1,876 below |
| Sri Lanka | $4,670 | Upper-middle income | $34 above |
India: a comfortable place in the lower-middle band
India’s value is $1,584 above the floor of the lower-middle band ($1,176) and $1,876 below the upper-middle entry line. Moving into the upper-middle band would require a sizeable rise in per-capita national income, and a single year’s figure cannot show how quickly that might happen.
Sri Lanka: a narrow crossing
Sri Lanka’s value clears the upper-middle entry line by $34, which is a very small buffer relative to a band that runs to $14,375. Because the classification uses one calendar year’s estimate, a revision to the 2025 figure or a weaker 2026 result could leave the country near the boundary in a later cycle. The FY2027 label itself does not change, but the margin is worth reading as a threshold crossing rather than a settled position.
What the “grows richer” wording can and cannot support
The headline’s phrase “grows richer” describes a trend, while the classification describes a level in one year. Sri Lanka’s move into the upper-middle band shows that its 2025 per-capita national income was above the line. It does not, on its own, establish a growth path, because the classification compares one year’s value against fixed thresholds. Showing that Sri Lanka has been rising steadily would require the same series of Atlas GNI per capita values across several years, which this classification does not provide.
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What the income group does not tell you
The classification is a per-capita national average. It does not show how income is distributed among people, it does not give a median household income, and it does not measure total economic size or the quality of public services. Two countries in the same band can differ widely in poverty rates, inequality, and living costs. Treat the label as one comparison point and check the underlying indicators before drawing conclusions about individual households.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Comparing the two countries correctly
- Use the same year’s Atlas GNI per capita for both countries. Here that is 2025 for both.
- Apply the thresholds for the same fiscal year. FY2027 bands are used for the classifications above.
- Note each country’s distance from the nearest boundary, since a $34 margin and a $1,876 gap carry very different meanings.
- Do not compare a current classification for one country with an older year’s value for the other.
- Remember that the classification is revised annually, so the labels may change in later fiscal years.
Where you need a full picture of living standards, pair the income group with inequality, poverty, and cost-of-living measures from the same source and year.
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