News
Lanka officially out of sovereign default
View(s):Treasury Secretary Mahinda Siriwardena yesterday declared that Sri Lanka had officially exited sovereign default, and it marked a major milestone in the country’s economic recovery process.
“This has been a long and difficult journey, comprising painful reforms and a very complex debt restructuring,” Mr. Siriwardena posted a message on his ‘X’ account.
The comments came after Fitch Ratings on Friday said it was upgrading Sri Lanka’s foreign currency rating out of restricted default (RD) status to CCC+.
The Treasury Secretary stressed the collective efforts and said everyone must make their utmost contribution.
“There is no room to repeat policy errors by relying on dogmatic beliefs, ideological leanings, and being led by false narratives, which typically lead to unrealistic and unsustainable policies,” he said.
The Fitch rating upgrade came after 98 percent of bondholders accepted an offer to restructure defaulted bonds with new securities issued on Friday.
Fitch has also upgraded the local-currency IDR (Issuer Default Rating) to ‘CCC+’ from ‘CCC-’ to align with the Long-Term Foreign-Currency IDR, as the risk of another default on local-currency debt has been reduced by the completion of the international sovereign bond restructuring and an improved outlook for macroeconomic indicators, a statement from the rating agency said.
In April 2022, the Sri Lankan government announced that it was defaulting, making it the first sovereign default in Sri Lanka’s history and the first state in the Asia-Pacific region to enter sovereign default in the 21st century.
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!