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Sri Lanka’s external vulnerability risks to remain elevated – Moody’s

Moody's Investors Service said that Sri Lanka’s government liquidity and external vulnerability risks will remain elevated and that it would continue to face “material credit challenges” ahead, in a report published this week.

The report on Sri Lanka’s fiscal reforms, stated that in particular “persistently high government liquidity and external vulnerability risks will maintain pressure on the sovereign's credit profile, as large external payments come due in 2019-2022”.

“High general government debt levels, very low debt affordability, and fragile external payments position continue to present the sovereign with material credit challenges,” the report added.

It went on to state that “continued advancement of reforms that support fiscal consolidation and reduce external vulnerabilities under Sri Lanka's current IMF program will be critical to mitigating macroeconomic risks”.

See the full text here.