Sri Lanka slams S&P over ‘illogical, ill-advised, unwarranted’ outlook cut

Feb 15, 2008 (LBO) – Sri Lanka's central bank has slammed Standard and Poor's (S&P) over an outlook cut saying the move was unwarranted, illogical, ill-advised, and without rational basis. "It is abundantly clear that S&P has chosen to overlook the many favourable factors and are, for reasons best known to them, suddenly discovering weaknesses in fiscal and debt consolidation of such a magnitude that the outlook needs to be changed urgently," the Central Bank said in a statement on its website Friday.

"This sudden reaction raises grave doubts as to the objectivity and impartiality of their decision, and Sri Lankan authorities view S&P’s decision as being illogical, ill-advised and without rational basis or foundation."

The statement said authorities were "greatly surprised and disappointed" by the lowering of the stable outlook of Sri Lanka's 'B+' speculative rating to 'negative' earlier in the day.

"Such a change has been effected without any prior information or discussion with the Sri Lankan authorities," the Central Bank said.

"The reasons that have been attributed by S&P for the revision of outlook are also untenable."

The monetary authority said Sri Lanka