S&P assessment reflects stronger investor confidence in Sri Lanka, minister says

Sri Lanka’s latest assessment by S&P Global Ratings reflects growing investor confidence and continued economic stability, Labour Minister and Deputy Finance and Planning Minister Anil Jayantha Fernando said on Wednesday.

Addressing a media briefing, Fernando said Sri Lanka had maintained economic stability despite external pressures, including Cyclone Ditwah and the conflict in the Middle East.

He said S&P Global Ratings had raised Sri Lanka’s Transfer and Convertibility Assessment to “B-” from “CCC+”, reflecting stronger foreign exchange liquidity, improved investor confidence and continued progress in debt transparency and engagement with international creditors.

Fernando said Sri Lanka’s debt transparency score had also increased to 43.67 out of 50 in 2026 from 37.33 in 2025, placing the country fourth among those assessed.

He said the Government had strengthened foreign exchange reserves without imposing import restrictions or suppressing economic activity, while the economy expanded by 5.1 per cent in the first quarter of 2026.

Sri Lanka had achieved 63.5 per cent of its projected annual revenue target by July, Fernando said, expressing confidence that the Government would meet or exceed the full-year target.

He acknowledged continuing challenges, including the country’s debt burden, dependence on imported energy and global economic uncertainty.

The Government would continue prudent fiscal and macroeconomic policies to strengthen long-term economic stability and investor confidence, he said.