Fitch confirms Sri Lanka’s rating as ‘BB-’

April, 29, 2014

While taking the prevailing economic growth into consideration, the global debt rating agency Fitch has confirmed Sri Lanka as BB- rating with a stable outlook.

However, Fitch Rating has stated that when compared to other similar countries Sri Lanka’s government debts and foreign debts are very high.

This rating is due to inflation being at 4.2 percent and credit growth at 4.4 percent, which are low, according to Fitch Ratings. Also, the current account deficit has decreased from 6.7 percent of the Gross Domestic Product in 2012 to 3.9 percent in 2013.

Fitch has further predicted that in 2014 the external current account deficit is expected to narrow to 3.2 percent of Gross Domestic Product while the direct foreign investment would only cover a small part of the current account deficit.

Meanwhile, compared to the other countries which have been rated BB, Sri Lanka’s rating is three levels below the lowest investment grade rating, according to Fitch.

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