📈 Sri Lanka Eyes 'B' Rating Upgrade Amid Strong Credit & Growth Momentum

• Macro Overview: Sri Lanka is moving closer to a sovereign credit rating upgrade to 'B' (target 'B-' by early 2027 from 'CCC+') driven by 11 consecutive quarters of expansion, fiscal discipline, and progress under the IMF program. • GDP Growth: • 2026 GDP Growth Forecast: 4% – 4.5%. • 2Q 2026 Growth Projection: 4% – 5% YoY, led by broad-based domestic expansion. • Private Sector Credit: • 2026 Forecast: Accelerating to ~22% YoY growth. • June Disbursements: Rs. 245 Bn (+27.4% YoY), signaling strong domestic demand without overheating due to moderated govt borrowing. • Fiscal & Debt Dynamics: • Public Debt: Down from 126% of GDP in 2022 to 91.6% in 2025, with further reductions in 2026 outperforming IMF targets. • Market Access: 'B' rating expected to unlock international capital markets, helping raise US$ 1.5 Bn to refinance maturing external debt.