Fitch Ratings has downgraded Sri Lanka’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) one notch to ‘B+’ from ‘BB-‘.
A Negative Outlook has been assigned to the IDRs.
The issue ratings on Sri Lanka’s senior unsecured foreign and local currency bonds are also downgraded to ‘B+’ from ‘BB-‘.
The Country Ceiling is downgraded to ‘B+’ from ‘BB-‘ and the Short-Term Foreign-Currency IDR is affirmed at ‘B’.
Fitch said the rating action reflects increasing refinancing risks.
“Further, the sovereign’s external liquidity position remains strained, reflecting pressure on foreign exchange reserves,” it added.
Meanwhile Finance Minister Ravi Karunanayake said that the former Government had obtained limitless loans that is unbearable to the country.
Participating at a media briefing held at the Finance Ministry yesterday he said that the International Monetary Fund had also queried about this.