Fitch Raises Sri Lanka Credit Rating to B- on Stronger Buffers

Fitch Ratings upgraded Sri Lanka’s credit rating to B- with a stable outlook, moving up from CCC+ as the country strengthened its external buffers against global shocks. The agency’s decision reflects an improved capacity to absorb volatility originating outside the domestic economy. Even after the upgrade, Fitch notes that a B- rating remains speculative, signaling that material default risk is still present. The change is positive for market perception, but it does not remove concerns typically associated with higher-risk sovereign debt. The stable outlook suggests Fitch does not expect the rating to change in the near term.