S&P affirms Sri Lanka 'CCC+/C' ratings; outlook stable

Standard & Poor’s Global Ratings has affirmed Sri Lanka’s long-term sovereign credit rating at "CCC+" and its short-term rating at "C," with a stable outlook[1]. The ratings reflect the country’s ongoing efforts to stabilize its economy following a severe balance of payments crisis and the implementation of an IMF-supported economic recovery program. S&P noted that while Sri Lanka continues to face high debt levels and limited fiscal flexibility, the government has made progress in restoring market confidence through structural reforms and improved fiscal discipline. The stable outlook indicates that S&P expects the country to maintain its current trajectory of economic adjustment without significant deterioration in its credit profile. However, risks remain, including vulnerability to external shocks and the need for continued policy execution to ensure sustainable debt management. Investors are advised to monitor developments in Sri Lanka’s fiscal and external accounts, as well as the pace of structural reforms, which will be critical to long-term creditworthiness.