Sri Lanka’s Long-Term Foreign Currency Issuer Default Rating remains at “Restricted Default,” or “RD,” according to Fitch Ratings.
The international credit rating agency stated in a statement on Friday, September 8, that the country’s reserves will only have an impact on the rating after it has been lifted out of the “RD” category.
Fitch added that although though reserves have grown over the past nine months to around USD3.8 billion in July 2023, they still fall far short of the USD7.3 billion average over the period from 2014 to 2019.
According to Fitch Ratings, APAC (Asia-Pacific) sovereigns’ reserve dynamics appear to be diverging, which could have an impact on their credit profiles.
