Sri Lanka facing debt refinancing risks: Fitch

ECONOMYNEXT – Sri Lanka is one of the frontier markets in Asia facing external pressure and debt refinancing risks this year, Fitch Ratings said in a new assessment of frontier market it rates.

The rating agency noted that in Asia it downgraded Pakistan and Sri Lanka in December 2018.

“Both countries face external pressures and refinancing risks, and these were exacerbated in Sri Lanka by October’s political crisis,” the report said.

“IMF assistance may eventually be forthcoming in Pakistan, which has engaged in programme discussions, and Sri Lanka appears keen to resume its programme.”

Sri Lankan President Maithripala Sirisena triggered a political crisis and rating downgrades when he sacked Prime  Minister Ranil Wickremesinghe in October 2018, replacing him with former president Mahinda Rajapaksa and dissolved parliament.

In December, the island’s supreme court overturned the decision, saying it was illegal. (Colombo/January 21/2019)
 

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