Sri Lanka's Transfer and Convertibility Assessment has improved to 'B-' from 'CCC+' according to S&P Global Ratings, reflecting stronger foreign exchange positions and investor confidence amid ongoing economic recovery efforts.
Sri Lanka's creditworthiness assessment has shown marked improvement, with S&P Global Ratings upgrading the country's Transfer and Convertibility (T&C) Assessment to 'B-' from its previous 'CCC+' rating. According to Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, this development reflects growing investor confidence and demonstrates the country's ability to maintain economic stability despite external pressures including severe weather events and regional geopolitical tensions.
The upgrade comes alongside other positive indicators in the country's economic performance. Sri Lanka's debt transparency score has increased substantially to 43.67 out of 50 in 2026, up from 37.33 in 2025, placing the nation fourth among countries assessed in this category. Additionally, foreign exchange reserves have been strengthened without implementing restrictive import policies or suppressing economic activity, while the economy recorded 5.1% growth during the first quarter of 2026.
Government revenue collection has also progressed favorably, with authorities achieving 63.5% of the projected annual revenue target by mid-year 2026. Officials have expressed confidence that the full-year target will be achieved or surpassed. Dr. Fernando acknowledged that challenges remain, including the country's substantial debt burden, energy import dependence, and broader global economic uncertainties.
The government has committed to maintaining prudent fiscal and macroeconomic policies to sustain long-term economic stability and continue building investor confidence as the country moves forward with its economic recovery programme.
