The Sri Lankan government has criticised Fitch Ratings after the agency downgraded the Long-Term Foreign-Currency Issuer Default Rating (IDR) of Sri Lanka from ‘Stable' to ‘Negative’, directly citing new Sri Lankan president Gotabaya Rajapaksa’s actions.
The ratings agency had blamed a “significant shift in fiscal policy” in Colombo for the downgrade but Sri Lanka’s finance ministry claimed “erroneous assumptions” had been made, reports Xinhua.
"Taking all into consideration, the best estimate of the budget deficit would be around 5.5 percent of GDP in 2020, as against the Fitch's projection of 6.5 percent of GDP," the ministry said.