COLOMBO, Sept. 8 (Xinhua) -- Fitch Ratings reaffirmed Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating at "Restricted Default," or RD, according to its latest report.
Fitch said in a report released on Sept. 7 that the country's reserve levels will influence the rating only once they have moved it out of "RD."
"Despite an increase in reserves over the last nine months to around 3.8 billion U.S. dollars in July 2023, they remain well below the 7.3 billion dollar average over 2014-2019," Fitch said in a statement.
Reserve dynamics among Asia Pacific countries appear to be diverging, with potential implications for their credit profiles, Fitch Ratings said.
Some central banks have been able to accumulate reserves on current account improvements or investment inflows, while others still see their currencies under pressure from U.S. Fed tightening prospects, it said. ■
