Since Sri Lanka’s selective default in April 2022, the country’s banking system, including the central bank and commercial banks, has repaid or built reserves amounting to 7.39 billion US dollars. This period marked a pivotal shift in policy as interest rates were hiked to end the inflationary policies that had previously kept rates artificially low.
Fitch Ratings has noted that political risks to Sri Lanka’s debt restructuring process have reduced following the authorities’ endorsement of the IMF programme targets and agreement to proceed with debt restructuring terms established with international bondholders in September. The election of Anura Kumara Dissanayake as president in September had initially caused uncertainty, raising concerns over
Fitch Ratings has downgraded the Maldives’ credit rating from CCC+ to CC, citing a decline in foreign reserves and the upcoming repayment of foreign debt and sukuk bonds starting next year. As of July, the country’s gross foreign reserves had fallen to 395 million USD, down from 492 million USD earlier. Domestic reports highlight growing