Sri Lanka has succeeded in maintaining its sovereign credit rating at its previous level, according to the latest ratings released by Standard & Poor’s (S&P) in July 2026, Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said.
Addressing the country’s economic performance and future targets, Dr. Fernando said the Government had preserved macroeconomic stability despite domestic and global shocks, including the impact of Cyclone Ditwah and instability in the Middle East.
He described the stable rating as a significant achievement, attributing it to the Government’s consistent economic policies and political stability.
Dr. Fernando also highlighted the improvement in Sri Lanka’s Transfer and Convertibility (T&C) assessment, which measures a country’s ability to facilitate the transfer of profits and convert local currency into foreign currency for debt servicing. He said the rating had improved to CCC+ in 2025 and further to B- in 2026, reflecting stronger foreign exchange liquidity, reserve accumulation and macroeconomic management.
He further said Sri Lanka had made notable progress in debt transparency and investor engagement, scoring 43.67 out of 50 in the latest assessment, compared with 37.33 in 2025. According to the Deputy Minister, this placed Sri Lanka fourth among the countries assessed in the 2026 evaluation.
Dr. Fernando said the country’s foreign reserves had been built without restricting imports or contracting economic activity, but through strategic interventions by the Central Bank to maintain financial stability.
He also pointed to the country’s 5.1% economic growth in the first quarter of 2026 and said Government revenue collection remained on track, with 63.5% of the annual revenue target achieved by July.
While acknowledging ongoing challenges, including high debt servicing costs stemming from borrowings by previous governments, global geopolitical tensions and vulnerability to natural disasters, Dr. Fernando said the Government remained committed to maintaining economic stability through prudent fiscal management and long-term debt sustainability measures.
He said the latest S&P assessment demonstrated growing investor confidence in Sri Lanka and reflected the country’s resilience in navigating external and domestic economic challenges.
