The government's ranking process is irrational

“Once again, Moody’s irrational rating action with regard to Sri Lanka comes a few days before a key event, namely the announcement of the Government Budget for 2022, and this apparent hastiness and the view expressed during discussions with Moody’s analysts that the nature of the Budget is irrelevant to the financing plans of the government clearly demonstrates the lack of understanding of such analysts,” a statement issued by the Central Bank said.

 

The statement charged that Moody’s assessment had failed to take into account the latest developments in strengthening the country’s external position through an array of measures, some of which have already yielded intended outcomes, as announced by the Central Bank of Sri Lanka (CBSL) on 26 October 2021.

 

The Central Bank further said in addition to the six-month strategy articulated in the Road Map presented by the CBSL on 01 October 2021, Moody’s assessment has failed to recognise the medium to long term funding arrangements being finalised with various bilateral sources, which are due to be materialised in the near term.