Strong growth, meeting debt repayments, shrinking deficits and FDI could see ratings improvement
Says debt sustainability on positive footing despite spiking interest rates
Believes tourism income, shrinking trade deficit and bilateral swaps can meet $4b repayments
Sri Lanka is projected to grow by 5.3% in 2021, showcasing a strong turnaround from contracted growth this year, with recent ratings downgrades having limited impact on debt sustainability and possibly even being reversed at the end of next year, a report from Nation Lanka Equities said yesterday.
The report predicts GDP to grow 5.3% Y-o-Y in 2021, slightly below the Sri Lankan Government’s estimate of 5.5% but ahead of several international rating agencies.