Fitch Ratings has upgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘RD’ (Restricted Default).
The Local-Currency IDR was also raised to ‘CCC+’, reflecting reduced risk of default following the completion of the international sovereign bond restructuring and improved macroeconomic indicators.
Sri Lanka finalized its domestic debt optimization in September 2023, including restructuring treasury bills and advances held by the Central Bank into new instruments. Fitch noted no outlook is assigned for ratings at ‘CCC+’ or below.
