Sri Lanka s foreign reserves grew 2.2 percent to 2,755 million US dollar in April 2023 from 2,694 million US dollars in March, central bank data showed.
Fitch Ratings has cut the outlook of Sri Lanka s Abans Plc, a consumer goods retailer to negative s from stable due to difficulties in importing after a forex shortages emerged from a broken soft-peg.
Fitch Ratings has downgraded the Sri Lanka-based Lakdhanavi Limited’s National Long-Term Rating to ‘AA-(lka)’ from ‘AA+(lka)’. The Outlook is Stable. The downgrade reflects the risk of disruptions to Lakdhanavi’s domestic operations from a potential fuel shortage and heightened counterparty risk due to its exposure to payments from the Sri Lankan government (Long-Term Foreign-Currency Issuer Default.
Some Sri Lanka firms could be hit on import controls as reserves fall: Fitch island.lk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from island.lk Daily Mail and Mail on Sunday newspapers.
Friday July 23, 2021 8:41 am
Friday July 23, 2021 8:41 am
ECONOMYNEXT – Some Sri Lanka firms could be hit while firms in essential goods may be less affected and import substitution firms could benefit if import controls are tightened on weak external finances, Fitch, a rating agency said.
“…Sri Lanka sovereign’s weak external finances will affect corporates importing non-essential finished goods such as consumer durables more than corporates importing essential finished goods such as pharmaceuticals, food or clothing,” Fitch said.
“At the same time, we believe restrictions are less likely in the near term on the importation of raw materials for the domestic manufacture of essential products such as personal care, or for those industries serving as import-substitutes such as tyre and footwear manufacturers.”