S&P downgrades Sri Lanka's rating on rising external financing risks

Global rating agency Standard and Poor’s has downgraded Sri Lanka’s sovereign credit rating from 'B-' to 'CCC+' on rising external financing risks and fiscal deterioration.
 

With the implementation of expansionary budget measures in Sri Lanka, the country's fiscal position is expected to deteriorate materially over the next few years in the absence of favourable economic and financial conditions, S&P said in a statement.

Existing funding support from official sources does not appear sufficient to cover financing needs. This means that Sri Lanka may need external commercial funding, which can be difficult and costly.
 

The outlook is stable, reflecting the risks of