S&P revises Sri Lanka outlook to negative, affirms 'CCC+/C' rating

COLOMBO - Ratings agency Standard and Poors says Sri Lanka's external position has weakened due to falling reserves and weak demand for Sri Lanka Development Bonds (SLDBs). "These developments continue to affect investor confidence and increase external financing difficulties," the agency says.

"We revised our outlook on Sri Lanka to negative to reflect our views that the government may face an increasingly challenging financing environment over the next 12 months. "We affirmed our 'CCC+/C' long- and short-term sovereign credit ratings on Sri Lanka.

S&P said the negative outlook reflected itsr expectation that Sri Lanka's financing environment may get more difficult over the next 12 months. This would affect Sri Lanka's ability to service its debt.

www.standardandpoors.com (ATI).