Fitch downgrades Sri Lanka’s local currency debt rating to ‘CC’

Fitch downgrades Sri Lanka’s local currency debt rating to ‘CC’

December 2, 2022   12:54 am

(Reuters) - Fitch on Thursday downgraded Sri Lanka’s Long-Term local-currency debt rating by two notches to “CC” from “CCC”, citing a probable local-currency debt default in the face of high interest costs and tight domestic financing conditions.

The South Asian country is suffering its worst financial turmoil since independence from Britain in 1948 as a result of economic mismanagement, as well as the COVID-19 pandemic that wiped out the Indian Ocean island’s key tourism industry.

Sri Lanka aims to restore growth to pre-crisis levels in 2026, a state finance minister said on Wednesday, with policymakers intent on meeting a December deadline to present proposals that might help unlock an International Monetary Fund bail-out

The ratings agency has affirmed Sri Lanka’s foreign currency debt rating at ‘RD’ or in default territory, reflecting the country’s worst economic crisis in decades.

Source: Reuters

--Agencies

Disclaimer: All the comments will be moderated by the AD editorial. Abstain from posting comments that are obscene, defamatory or slanderous. Please avoid outside hyperlinks inside the comment and avoid typing all capitalized comments. Help us delete comments that do not follow these guidelines by flagging them(mouse over a comment and click the flag icon on the right side). Do use these forums to voice your opinions and create healthy discourse.

Most Viewed Video Stories

'We acknowledge past mistakes, but railways show no progress' - Minister Bimal (English)

'We acknowledge past mistakes, but railways show no progress' - Minister Bimal (English)

2026 Appropriation Bill sets total govt expenditure at Rs. 4.43 trillion (English)

Minister Wasantha Samarasinghe's assets under scrutiny (English)

Public consultation on proposed electricity tariff revision to begin today (English)

🔴LIVE | Ada Derana Prime Time News Bulletin

Ada Derana Lunch Time News Bulletin 12.00 pm

President inaugurated resumption of Kadawatha–Mirigama Expressway construction (English)

'Backhoe Saman' & 'Thembili Lahiru' to be detained till Dec. 2 for further questioning (English)