S&P affirms Sri Lanka's ratings at CCC+/C with 'stable' outlook
- S&P noted that conditions supporting economic growth and fiscal repair will persist over the next six to 12 months
Credit ratings agency S&P Global affirmed Sri Lanka’s foreign currency ratings at “CCC+/C” with a “stable” outlook on Monday, citing strong revenue growth and lower debt servicing costs.
“The ‘CCC+’ ratings reflect our views that Sri Lanka’s creditworthiness is vulnerable and dependent upon favorable financial and economic conditions but the government does not face a near-term credit or payment crisis,” the agency said.
S&P noted that conditions supporting economic growth and fiscal repair will persist over the next six to 12 months.
Sri Lanka’s central bank likely to hold rates to control inflation
However, the agency warned that higher energy import bills and renewed escalations in the Middle East war could dampen economic growth and weigh on tourism earnings and remittances.
“We expect the impact on economic activities to be temporary due to the government’s proactive policies to secure energy and fertilizers supply,” S&P said.
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