Bangladesh has slipped 10 notches in the world happiness report, to 125th position among 156 countries.
The country is ahead of two South Asian countries -- India at 140th and Sri Lanka at 130th, according to the report released released on Wednesday coinciding with the United Nations' International Day of Happiness.
However, Pakistan has been ranked 67th, Bhutan 95th and Nepal 100th in the happiness index. In 2018, Bangladesh was the 115th happiest country of the world.
The report was prepared based six factors that support well-being: income, freedom, trust, healthy life expectancy, social support and generosity. It was published by the Sustainable Development Solutions Network for the UN.
"Political institutions and processes affect people’s happiness, thus treating happiness as an outcome," the report observed in a chapter on 'Happiness and Voting Behaviour'.
Finland is the world's happiest country for the second straight year followed by Denmark, Norway, Iceland, the Netherlands, Switzerland, Sweden, New Zealand, Canada and Austria.
They are followed by Australia, Costa Rica and Israel.
People in South Sudan are the unhappiest with their lives, according to the survey, followed by Central African Republic (155), Afghanistan (154), Tanzania (153) and Rwanda (152).
The rankings of the world's happiest countries came from an analysis of data from surveys in 156 countries taken from 2016 to 2018.
Since 2013, the United Nations has been celebrating the International Day of Happiness on 20 March as a way to recognise the importance of happiness in the lives of people around the world.