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Sri Lanka’s Central Bank says Moody’s latest rating decision is unfounded

Sri Lanka’s Central Bank says Moody’s latest rating decision is unfounded

Colombo : Sri Lanka’s Central Bank on Wednesday said that it is of the view that the decision by Moody’s to downgrade Sri Lanka’s foreign currency issuer and senior unsecured ratings from B1 (Negative) to B2 (Stable) does not properly reflect the country’s macroeconomic fundamentals, and therefore unwarranted.

The Central Bank said it wishes to reiterate that Sri Lanka’s macroeconomic position has neither deteriorated nor has there been any policy slippage since Moody’s last rating decision in July 2018, in spite of the recent developments in the country’s political sphere.

“In fact, based on satisfactory programme performance, the Sri Lankan authorities and the IMF reached staff-level agreement following the fifth review of the Extended Fund Facility (EFF) programme on 26 October 2018, and the agreement was to be announced on 29 October 2018,” the Central Bank said.