Fitch Ratings on Thursday downgraded Sri Lanka’s Long-Term local-currency debt rating by two notches to “CC” from “CCC”, Reuters reported.
According to the report, Fitch cited a probable local-currency debt default in the face of high-interest costs and tight domestic financing conditions for the downgrade.
Sri Lanka is suffering its worst financial turmoil since its independence from Britain in 1948 as a result of economic mismanagement, as well as the COVID-19 pandemic that wiped out the Indian Ocean island’s key tourism industry.
Sri Lanka aims to restore growth to pre-crisis levels in 2026, a state finance minister said on Wednesday, with policymakers intent on meeting a December deadline to present proposals that might help unlock an International Monetary Fund bailout
The ratings agency has affirmed Sri Lanka’s foreign currency debt rating at ‘RD’ or in default territory, reflecting the country’s worst economic crisis in decades. (NewsWire)