By: Isuru Parakrama
November 28, Colombo (LNW): Moody’s Investors Service has announced that it is reviewing Sri Lanka’s Ca long-term foreign currency rating for a possible upgrade, a move triggered by the government’s recent bond-exchange offer.
This development comes after the country launched the bond swap on Tuesday, a key component of its ongoing debt restructuring programme, which is aimed at addressing its $12.55 billion external debt.
The bond exchange is an integral step in Sri Lanka’s efforts to stabilise its economy and navigate its financial challenges.
This restructuring initiative follows the country’s historic default on its foreign debt in May 2022, which marked a critical point in Sri Lanka’s economic crisis.
The default was triggered by a crippling debt burden, exacerbated by dwindling foreign exchange reserves and mounting fiscal pressures.
As part of the restructuring process, the Sri Lankan government has also introduced new US dollar-denominated debt instruments, which Moody’s has provisionally rated at Caa1.
