On Monday, Fitch downgraded Sri Lanka’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to B-plus from BB-minus on increasing refinancing risks, significant debt maturities, and weaker public finances.
Sri Lanka’s benchmark share index closed 1.27% lower, or down 78.41 points at 6,113.40, the lowest close since 11 April 2014.
The 182-day and 364-day t-bill yields rose 50 to 55 basis points last week to a more than two-year high, after the central bank raised key policy rates by 50 basis points from record lows.
Turnover was Rs. 566.9 million ($3.94 million) on Tuesday, below this year’s daily average of Rs. 705.5 million.