Moody's rated Sri Lanka at a below-investment-grade 'B1' with a 'stable' outlook ahead of a billion US dollar euro bond issue in September. Fitch and S & P has rated Sri Lanka 'B+' four notches below the lowest 'BBB-' investment grade level.
A commission report which recommended changes to Sri Lanka's tax regime is with the government and there were expectations that tax holidays which had sapped revenues would be phased out and the base broadened.
"If that is something that does indeed improve the credit profile on a stand-alone basis as well as relative to other single 'B' credits then we would certainly consider upward movements in the outlook," Mitra told teleconference for investors on its Sri Lanka rating report.
"For now we are maintaining