Moody’s downgrading of Sri Lanka is unwarranted..!

Foreign Ministry explains its stance..!

Foreign Investors are invited not to be dissuaded..!

Sri Lanka’s Finance Ministry rejected Moody’s ratings downgrade today is unwarranted. This downgrading Sri Lanka’s long term Foreign Currency Rating from B2 to Caa1is unwarranted especially at a time when the new Government is about to announce its Budget for 2021.

Releasing a statement shortly after Moody’s downgraded Sri Lanka’s ratings to Caa1 from B2, the Finance Ministry said that such an announcement is unwarranted, spelling out the policy framework proposed in the medium term.

“We observe, with disappointment, today’s rating downgrade by Moody’s Investors Service and the recent release of an erroneous analysis by an International Investment Bank expressing concerns about Sri Lanka’s economic and financial strength and external debt service capacity,” the Finance Ministry said.

"This downgrade and the report fail to do justice to the ground reality of the ongoing rapid economic recovery backed by vastly improved business confidence arising from the return of political and policy stability after a lapse of five years."

Arrangements to pay the International Sovereign Bond of US dollars 1 billion maturing on 4th October 2020, have already been made and funds will be credited to the paying agent’s account on 2nd October 2020.

"Foreign investors are invited not to be dissuaded by the recent unwarranted rating downgrade and the erroneous analysis published recklessly, but to be guided by improving economic conditions."