Though there is political instability in Sri Lanka currently, when compared to other ordinary countries, the island nation’s economic growth is stronger, the international rating agency Moody’s has stated.

However, Moody’s has stresses that Sri Lanka needs to focus strong attention on its foreign debts and budget deficit.

While Moody’s has rated the Sri Lankan government debt as ‘B1’ this is a very low rating within the investment grade.

Moody’s has further added that though Sri Lanka’s economic growth had risen speedily immediately after the war had been concluded in 2009, by now this growth has slowed but still is higher when compared to other ordinary countries.

It also states that during this time Sri Lanka had attracted more direct foreign investments.

Though during the last decade the Sri Lankan government had taken efforts to reduce its debts, when compared to other countries the Sri Lankan government’s debts is still highly risky, Moody’s has stated.

Furthermore, one-third of Sri Lanka’s state revenue is spent on paying interests on foreign borrowings, it stated.