Sri Lanka local currency ratings dip to 'Selective Default' 

THE message is mixed, but following a debt restructuring, S&P says it will likely raise its local currency sovereign ratings on Sri Lanka to reflect its post-restructuring creditworthiness . . .

COLOMBO -- Sri Lanka has confirmed a restructuring exercise on some of its local-currency-denominated Government bonds in what ratings agency Standard and Poor's, is classifying as a "distressed exchange."

The exercise is part of efforts to restore the sustainability of the government's finances," S&P says.