Wednesday, 05 December 2018 - 7:38
Central Bank disputes rating agencies' latest decisions to downgrade country's ratings

Sri Lanka's Central Bank disputing the decisions by two global rating agencies to downgrade the island's credit rating said that the decisions are based on uncorroborated facts on the country's macroeconomic fundamentals and asserted that despite the ongoing political crisis, Sri Lanka's financial sector remains resilient.

Two global rating agencies Fitch Ratings and Standard & Poor's downgraded Sri Lanka yesterday, citing refinancing risks and an uncertain policy outlook.

The Central Bank of Sri Lanka is of the view that the decisions by Fitch Ratings on 3 December and Standard and Poor's on 4 December to downgrade Sri Lanka's Long-Term Rating from 'B+' to 'B' are based on uncorroborated facts on the country's macroeconomic fundamentals.

In spite of the recent developments in the country's political sphere, an array of measures have been taken by the CBSL and the Government to minimize any potential impact from the recent political developments on the economy, especially with regard to external financing requirements and debt payment obligations.

Given these parameters, the Central Bank is of the view that the recent rating actions by Fitch Ratings and S&P Global Ratings are unwarranted.
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