Government Welcomes S&P and IIF Assessments

COLOMBO (News 1st) - S&P Global Ratings has affirmed Sri Lanka’s sovereign credit rating at Triple C plus over C with a stable outlook, citing economic resilience despite recent external economical shocks.

Speaking on this matter, Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said that maintaining the rating level despite the economic shocks faced by the country at present, is a positive development, reflecting the degree of stability amid ongoing challenges.

According to the Deputy Minister the government has managed to maintain stability in Sri Lanka’s credit rating despite having to navigate two major external challenges. 

He said these include: the economic impact of Cyclone Ditwah, which affected the entire country was substantial, while uncertainties arising from the ongoing conflict in the Middle East have also continued to create pressure.

S&P’s Transfer and Convertibility Rating assesses factors such as an investor’s ability to repatriate earnings, convert local currency into foreign currency, and the country’s capacity to meet foreign debt servicing obligations.

Meanwhile, S&P Global Ratings has said the outlook on the long-term foreign and local currency ratings of Sri Lanka is stable. It has revised the transfer and convertibility assessment to 'B-' from 'CCC+'.