S&P lowers Sri Lanka rating to 'CCC' citing greater sovereign default risk

Standard & Poor’s (S&P) today lowered long-term sovereign credit rating on Sri Lanka from 'CCC+' to 'CCC' on increasing external financing risks.

There is a rising probability of sovereign default scenarios playing out over the next 12 months in the absence of an unforeseen positive development, S&P in a statement said the outlook is negative.

At the same time, the rating agency affirmed 'C' short-term credit rating.

S&P said the country's external position continues to weaken owing to elevated external obligations and uneven access to financing.

Foreign exchange resources will be further pressured over the coming quarters by additional external