COLOMBO, Jul 20 (NNN-XINHUA) – An announcement by international rating agency, Moody’s, that Sri Lanka’s credit rating was under review for downgrade, created undue uncertainty among investors, the country’s Ministry of Finance said, according to local media reports today.
“As experienced in the past, such undue uncertainty created by the rating agency could lead to price volatilities in the market for ISBs (International Sovereign Bonds) and for other investments,” the finance ministry said in a statement.
The finance ministry said, the government has taken appropriate measures to settle a maturing ISB payment worth one billion U.S. dollars by the end of July.
Moody’s has previously downgraded Sri Lanka’s credit rating on the eve of an ISB settlement in Sept, 2020, according to the statement.
The finance ministry said, Sri Lanka has an unblemished debt servicing record and showed signs of economic recovery with a 4.3 percent gross domestic product (GDP) growth rate, in the first quarter of 2021. Meanwhile, the country has made steady progress in vaccination against COVID-19.
Sri Lanka would need to revisit its relationship with rating agencies, the finance ministry said, adding that, it invited investors to engage one-on-one with policymakers or through roadshow discussions.
Moody’s announced yesterday that, Sri Lanka’s Caa1 rating was on review for a downgrade, due to external liquidity and default risks.– NNN-XINHUA
