BusinessFitch Ratings on Wednesday affirmed Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+' with a ‘Stable Outlook’. In Fitch's view, policies aimed at fiscal consolidation and maintenance of a disciplined monetary stance under the framework of the 3-year IMF-supported programme have improved Sri Lanka's policy coherence and credibility, the rating agency said in a media release. Although GDP growth of an estimated 3.9 per cent in 2017 fell short of forecasts due to weather-related supply disruptions, “we” expect growth to recover and stabilise at around 5 per cent in 2018 and 2019, Fitch said. Fiscal performance has improved following the approval and implementation of tax reforms. While these revenue reforms should be positive for a more credible fiscal framework over time, ineffective implementation and/or weaker-than-expected GDP growth remain downside risks to our fiscal projections,” it said.

Source: Sunday Times February 07, 2018 04:41 UTC