S&P lowers Sri Lanka

S&P said it downgraded Sri Lanka’s long-term foreign- and local-currency sovereign credit ratings to CCC+ from B-.

“We lowered our ratings on Sri Lanka based on our assessment that risks to debt-servicing capacity have risen, as the government’s access to external financing has become increasingly dependent on favorable business, economic, and financial conditions. The downgrade stems in part from the impact of Covid-19, which has significantly narrowed the government’s fiscal space and its capacity to generate earnings through sectors such as tourism.

The agency said it forecasts the economy will contract sharply by 5.3% in 2020, largely due to the pandemic but sees real GDP growth accelerating to 4.3% in 2021.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.