Fitch Affirms Sri Lanka at Restricted Default; Policy Uncertainty Following Elections

Fitch Ratings has affirmed Sri Lanka's LongTerm Foreign-Currency Issuer Default Rating (IDR) at 'RD' (Restricted Default) and Long-Term Local-Currency IDR at 'CCC-'. Fitch typically does not assign Outlooks to issuers with a rating of 'CCC+' or below.

Sri Lanka's September 2024 Presidential election was won by one of the opposition leaders.

"Fitch believes the result add uncertainty to the country's policy direction and could lead to a delay in the completion of the foreign-currency debt restructuring or renegotiation of the IMF programme," the agency said.

"The upcoming 2025 budget, to be adopted by November 2024, could offer clarity on the new government's policies."

Fitch-Affirms-Sri-Lanka-at-RD

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