Fitch Ratings has raised Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘Restricted Default’ (RD).
The Local-Currency IDR was also upgraded to ‘CCC+’, aligning it with the Foreign-Currency IDR due to reduced default risks.
This improvement follows Sri Lanka’s completion of its international sovereign bond restructuring.
Additionally, the successful domestic debt optimization in September 2023 bolstered the country’s financial stability.
The process included exchanging treasury bills and provisional advances held by the Central Bank for new treasury bonds and bills.
Fitch does not assign an Outlook to sovereigns rated ‘CCC+’ or lower.
