S&P affirms Sri Lanka 'B+/B' rating with stable outlook

SINGAPORE - Standard & Poor's Ratings Services has affirmed its 'B+' long-term and 'B' short-term sovereign credit ratings for Sri Lanka, and says the outlook remains stable. “We have incorporated Sri Lanka's favourable growth prospects in our projection,” S&P says.

S&P says it expects Sri Lanka to maintain per capita real GDP growth of close to 6% per year in the next few years. “We believe stronger growth may be possible if the business environment improves and net foreign direct investment rises above its current pace of about 1.5% of GDP. However, Sri Lanka's high growth could raise the risk of economic overheating because of capacity constraints.”