Sri Lanka’s rating upgrade signals shift from crisis recovery to growth: CBSL Governor

By The Pulseline News Desk

Sri Lanka’s upgrade by Fitch Ratings from ‘CCC+’ to ‘B-’ with a Stable Outlook signals continued progress in the country’s macroeconomic stabilisation and reform process, Central Bank of Sri Lanka (CBSL) Governor Nandalal Weerasinghe has said.

Addressing the 49^th Annual General Meeting of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) on Wednesday (23), Weerasinghe has said the restoration of economic stability following Sri Lanka’s severe economic crisis had created a stronger foundation for the country to move into its next phase of development.

He has said the Fitch upgrade reflected the progress made in stabilising the economy and implementing reforms.

“This progress has also been recognised by the upgrade of Sri Lanka’s sovereign rating by Fitch Ratings to ‘B-’ from ‘CCC+’, with a Stable Outlook,” Weerasinghe has said.

The upgrade comes as Sri Lanka seeks to consolidate the gains made since the economic crisis while continuing reforms aimed at strengthening public finances, rebuilding external buffers and restoring investor confidence.

For CBSL, however, the challenge now extends beyond stabilisation.

Weerasinghe has said the focus must increasingly shift towards sustainable investment, higher productivity and long-term economic growth, signalling a move from crisis management towards strengthening the economy’s capacity to generate sustained growth.

The transition is significant for an economy that has spent recent years prioritising stabilisation measures, debt restructuring and reforms following the unprecedented economic crisis.

The Governor’s remarks suggest that maintaining macroeconomic stability will now need to be accompanied by efforts to attract investment, improve productivity and expand the economy’s productive capacity.

The Fitch upgrade therefore represents not only a change in Sri Lanka’s sovereign credit rating, but also an indication of the broader shift in the country’s economic policy priorities — from restoring stability to creating the conditions for sustainable growth.