Moody's Upgrades Sri Lanka’s Credit Rating

Moody's Upgrades Sri Lanka’s Credit Rating to 'Caa1' with Stable Outlook After Debt Restructuring

Moody's highlighted that Sri Lanka's credit fundamentals have improved over the past two years, with a notable reduction in external vulnerability and government liquidity risk, which had previously been at elevated levels. This marks the end of a review process that was initiated last month, where Moody's had suggested a potential upgrade for the country.

In a parallel move, Fitch Ratings also raised Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating to 'CCC+' from 'Restricted Default', reflecting the progress made in restructuring the country's external debt.

The upgrade reflects investor confidence in Sri Lanka's recovery and the successful restructuring of its debt, as the country continues to navigate its financial challenges.