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Moody's warns bombings will impact GDP growth in Sri Lanka

The ratings agency, Moody's Investors Service warned this week that the Easter Sunday bombings would hit GSP grwoth and add greater pressure of the country's debt refinancing. 

"The primary challenge facing Sri Lanka is its large external debt refinancing needs over the next five years, with over $3 billion principal payable annually on external government debt over 2020-2024," Moody's analyst, Matthew Circosta. 

"While a range of financing options, including international dollar bond issuance and loans from bilateral and multilateral lenders, could support refinancing, the government is highly vulnerable to sudden shifts in investor sentiment that could affect the availability and cost of these funding sources," Circosta added. 

In a report published examining Sri Lanka's financy needs and options, Moody's further warned that political tensions around the expected presidential and parliamentary elections could impact negatively on reforms and thereby reduce investor confidence.