S&P Upgrades Sri Lanka’s Sovereign Rating to ‘CCC+/C’

The agency highlighted improvements in key economic indicators but warned that unresolved commercial debt, particularly bonds linked to SriLankan Airlines, continues to weigh on credit prospects.

While Fitch and Moody’s had already upgraded Sri Lanka following the successful restructuring of international sovereign bonds, S&P had delayed its decision due to incomplete airline-related restructuring.

S&P reaffirmed Sri Lanka’s domestic currency ratings at ‘CCC+/C’, noting that the country’s ongoing creditor talks are crucial to securing long-term financial stability.