🇱🇰 Fitch Upgrades Sri Lanka to ‘B-’ with Stable Outlook

Fitch Ratings has upgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating from ‘CCC+’ to ‘B-’ with a Stable Outlook, signaling progress in macroeconomic stabilization. • Macroeconomic Impact: Reflects successful fiscal consolidation, revenue mobilization, structural reforms, and debt restructuring following severe economic challenges. • Resilience: Highlights Sri Lanka’s ability to maintain stability despite external pressures, including the Hormuz conflict and environmental shocks. • Ceylon Chamber Priorities: • Sustain primary surpluses, revenue mobilization, and build foreign exchange reserves. • Reduce debt and debt-service ratios to unlock fiscal space. • Implement reforms in digitalization, trade facilitation, and labor. • Maintain targeted poverty reduction to ensure inclusive growth. • Investment Outlook: Sovereign credibility boost provides a platform to attract foreign direct investment (FDI) and drive private-sector-led economic growth.