Fitch Confirms Sri Lanka in Limited Default; Policy Uncertainty Following Elections – Lanka Business Online

Fitch Ratings has affirmed Sri Lanka’s Long-Term Foreign Currency Issuer Default Rating (IDR) at ‘RD’ (Limited Default) and Long-Term Local Currency IDR at ‘CCC-‘. Fitch generally does not assign an Outlook to issuers with a rating of ‘CCC+’ or below.

An opposition leader has won the September 2024 presidential elections in Sri Lanka.

“Fitch believes this outcome would add uncertainty to the country’s policy direction and could lead to a delay in completing the restructuring of foreign currency debt or renegotiation of the IMF program,” the agency said.

“The 2025 budget, expected to be passed in November 2024, could provide clarity on the new government’s policies.”

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