Sri Lanka remains vulnerable to energy price shock but is more resilient than in the past – Moody’s Ratings

Bangladesh (B2 negative), Pakistan (Caa1 stable) and Sri Lanka (Caa1 stable) are among the most vulnerable economies in Asia to high oil prices stemming from the Middle East conflict, Moody’s Ratings said in their latest analysis.

However, the countries have built capacity to absorb shocks in recent years, so are less exposed than in 2022, when rising energy prices at the same time as Sri Lanka’s sovereign default and severe floods in Pakistan had profoundly negative credit effects.