Sri Lanka has successfully maintained its sovereign credit rating at its previous level in the latest Standard & Poor's (S&P) Global Ratings assessment released in July 2026, despite both domestic and external economic challenges, Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said.
Speaking on Sri Lanka's economic progress and future outlook, Dr. Fernando said the country had preserved macroeconomic stability despite the impact of Cyclone Ditva and geopolitical tensions in the Middle East.
He highlighted that Sri Lanka's Transfer and Convertibility (T&C) Assessment, an important indicator of investor confidence, has improved significantly from CCC in 2022 to CCC+ in 2025, and further to B- in 2026. The assessment reflects a country's ability to allow investors to repatriate profits and convert local currency into foreign currency to meet debt obligations.
Dr. Fernando attributed the improvement to sound macroeconomic policies, political stability, stronger foreign exchange reserves and increased debt transparency. He noted that Sri Lanka's reserves were built without restricting imports or slowing economic activity, but through strategic interventions by the Central Bank.
He also said Sri Lanka had made significant progress in debt transparency and investor relations, scoring 43.67 out of 50 in the latest assessment, up from 37.33 in 2025. The improvement placed Sri Lanka fourth among the countries evaluated for debt transparency and investor confidence.
Highlighting the country's broader economic performance, Dr. Fernando said Sri Lanka recorded 5.1% economic growth in the first quarter of 2026, while achieving 63.5% of its annual revenue target by the end of July, putting the Government on track to meet or exceed its revenue goals for the year.
He acknowledged that high debt servicing costs, inherited debt obligations, natural disasters and external shocks remain key challenges. However, he said the Government would continue implementing prudent fiscal policies and debt management strategies to maintain economic stability and deliver long-term benefits to the public.
