Skip to content 
Search

Latest Stories

Fitch Ratings affirms Sri Lanka at ‘CCC’

Fitch Ratings affirms Sri Lanka at ‘CCC’

FITCH RATINGS has affirmed Sri Lanka's long-term foreign-currency issuer default rating (IDR) at 'CCC', indicating sustainability risks.

The country’s ‘CCC’ rating reflects low foreign-exchange reserves and high government debt, the rating agency said.


“A total of about $29 billion (£20.8bn) in foreign-currency debt obligations are due between now and 2026, against foreign-exchange reserves of $4.5bn (£3.2bn) as of end-April 2021,” Fitch Ratings said in a statement.

Sri Lankan authorities have recently secured project financing through various multilateral and bilateral channels equivalent to $400 million (£287m) and $1.5bn (£1.1bn), respectively.

These resources should enable Sri Lanka to meet its remaining debt maturities this year, but the country is yet to specify its plans to meet its foreign-currency debt-servicing needs for 2022, it said.

Sri Lankan authorities have consistently indicated that they do not intend to seek programme financing from the International Monetary Fund.

“We project foreign-exchange reserves to remain at about $4.5bn (£3.2bn) by end-2021 before declining to $3.9bn (£2.8bn) by end-2022,” Fitch said.

The agency projected Sri Lanka’s economic growth in 2021 at 3.8 per cent, down from an earlier forecast of 4.9 per cent due to surge in virus cases.

The country’s economy contracted by 3.6 per cent in 2020.

“We expect the economy to grow by 3.9 per cent in 2022. There remains a high degree of uncertainty associated with our forecasts in light of the evolution of new Covid-19 cases in the country,” the agency said.

Sri Lanka aims to vaccinate 60 per cent of its population by 2021-end, but supply shortages could hamper attaining the target.

More For You

Asian firm acquires Kings Court Hotel for £2.75m

UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)

Asian firm acquires Kings Court Hotel for £2.75m

UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.

Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.

Keep ReadingShow less
Priya Nair becomes first woman CEO in Hindustan Unilever's history

Priya Nair (Photo: Unilever)

Priya Nair becomes first woman CEO in Hindustan Unilever's history

PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.

The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy shrinks again in May, hitting Labour’s growth plans

THE UK economy contracted unexpectedly in May, marking the second consecutive monthly decline, according to official data released on Friday. The figures present a challenge for the Labour government as it attempts to revive economic growth.

Gross domestic product fell by 0.1 per cent in May, following a 0.3 per cent contraction in April, the Office for National Statistics (ONS) said in a statement.

Keep ReadingShow less
SBI UK cuts mortgage rates

The bank's commitment to green lending reflects focus on sustainability (Photo: Getty Images)

SBI UK cuts mortgage rates

BANKING major State Bank of India (UK) has cut interest rates on its buy-to-let mortgage products to help landlords reduce borrowing costs.

The bank said the rate cuts would help landlords invest in rental properties and meet growing demand for rental homes across the UK.

Keep ReadingShow less