Sri Lanka's economic growth is expected to drop to 6.9 percent due to the slowing down of construction activities, the World Bank says in a report.

The World Bank, in its report on South Asia, said the high consumption levels triggered by the salary hikes of public servants would somewhat offset the impact.

It also said the new government was reassessing the investment-led economic policy.

In the overall context, the Bank said, South Asia had the best growth rate, mainly driven by the accelerated growth level in India. (Kelum Bandara)