S&P Global Affirms Sri Lanka's Credit Rating Amid Economic Challenges

S&P Global has maintained Sri Lanka's credit rating at "CCC+/C" with a stable outlook, as the country experiences strong revenue growth and reduced debt costs. However, challenges such as high energy import bills and Middle East tensions could affect economic growth and tourism. Proactive policies aim to mitigate these impacts.

S&P Global affirmed Sri Lanka's foreign currency ratings at "CCC+/C" with a stable outlook, highlighting strong revenue growth and lower debt servicing costs.

The agency stressed that, while Sri Lanka’s creditworthiness remains vulnerable, it is contingent on favorable financial conditions, without any imminent credit crisis.

Despite positive growth projections, S&P warned of potential economic dampening due to rising energy costs and Middle East tensions, impacting tourism and remittances. The government’s proactive measures aim to secure energy and fertilizers supply.