Abstract Neural population dynamics are often highly coordinated, allowing task-related computations to be understood as neural trajectories through low-dimensional subspaces. How the network connectivity and input structure give rise to such activity can be investigated with the aid of low-rank recurrent neural networks, a recently-developed class of computational models which offer a rich theoretical framework linking the underlying connectivity structure to emergent low-dimensional dynamics. This framework has so far relied on the assumption of all-to-all connectivity, yet cortical networks are known to be highly sparse. Here we investigate the dynamics of low-rank recurrent networks in which the connections are randomly sparsified, which makes the network connectivity formally full-rank. We first analyse the impact of sparsity on the eigenvalue spectrum of low-rank connectivity matrices, and use this to examine the implications for the dynamics. We find that in the presence of sparsity, the eigenspectra in the complex plane consist of a continuous bulk and isolated outliers, a form analogous to the eigenspectra of connectivity matrices composed of a low-rank and a full-rank random component. This analogy allows us to characterise distinct dynamical regimes of the sparsified low-rank network as a function of key network parameters. Altogether, we find that the low-dimensional dynamics induced by low-rank connectivity structure are preserved even at high levels of sparsity, and can therefore support rich and robust computations even in networks sparsified to a biologically-realistic extent. Author summary In large networks of neurons, the activity displayed by the population depends on the strength of the connections between each neuron. In cortical regions engaged in cognitive tasks, this population activity is often seen to be highly coordinated and low-dimensional. A recent line of theoretical work explores how such coordinated activity can arise in a network of neurons in which the matrix defining the connections is constrained to be mathematically low-rank. Until now, this connectivity structure has only been explored in fully-connected networks, in which every neuron is connected to every other. However, in the brain, network connections are often highly sparse, in the sense that most neurons do not share direct connections. Here, we test the robustness of the theoretical framework of low-rank networks to the reality of sparsity present in biological networks. By mathematically analysing the impact of removing connections, we find that the low-dimensional dynamics previously found in dense low-rank networks can in fact persist even at very high levels of sparsity. This has promising implications for the proposal that complex cortical computations which appear to rely on low-dimensional dynamics may be underpinned by a network which has a fundamentally low-rank structure, albeit with only a small fraction of possible connections present.