Political risks still challenge Sri Lanka’s emergence from default – Fitch

The successful formation of a government under the new president, Ranil Wickremesinghe, is an important precondition for resolving Sri Lanka’s debt default, Fitch ratings said.

The Ratings Agency said that however, many challenges remain as the country seeks financing support from the IMF and debt restructuring from private and official bilateral creditors.

Fitch rates Sri Lanka’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘RD’ (Restricted Default).