Fitch upgrades Sri Lanka's sovereign rating to B-minus

Fitch Ratings has upgraded Sri Lanka's long-term foreign-currency issuer default rating to B-minus from B, according to the agency's latest assessment. The decision reflects improved macroeconomic stability and the government's progress in implementing structural reforms following the country's debt restructuring programme.

The upgrade represents a positive milestone for Sri Lanka's economy, which has faced significant headwinds in recent years. The rating change suggests that international investors and credit agencies view the country's recovery trajectory with cautious optimism, despite ongoing challenges in the external sector and public finances.

Fitch's assessment takes into account Sri Lanka's stabilised inflation, improved foreign exchange reserves, and efforts to strengthen fiscal discipline. The agency has also noted the government's commitment to meeting targets under its international bailout programme.

The rating remains below investment grade, placing Sri Lanka among emerging markets navigating recovery from economic stress. Further improvements in the rating outlook will likely depend on sustained progress in revenue mobilisation, debt management, and structural economic reforms in the coming months.