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Fitch Ratings upgraded Sri Lanka's Long-Term Foreign-Currency IDR to 'CCC+' from 'RD' and the Local-Currency IDR to 'CCC+' from 'CCC-', citing reduced default risk after completing international sovereign bond restructuring and domestic debt optimization in September 2023.
Fitch Ratings has upgraded Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC+' from 'RD' (Restricted Default), and also raised the Local-Currency IDR to 'CCC+' from 'CCC-' to align with the Long-Term Foreign-Currency IDR. This upgrade reflects the reduced risk of a default on local-currency debt following the completion of the international sovereign bond restructuring and an improved outlook for macroeconomic indicators. Additionally, Sri Lanka completed the local-currency portion of its domestic debt optimization in September 2023, which involved the exchange of treasury bills and provisional advances held by the Central Bank of Sri Lanka into new treasury bonds and bills.
