(LANKAPUVATH | COLOMBO) – Global credit rating agency Moody’s has expressed confidence that the election of Anura Kumara Dissanayake as Sri Lanka’s new President will not derail the country’s reform agenda.
Moody’s believes that the broad appetite for economic reforms, including the ongoing debt restructuring and the IMF-backed program, will remain intact despite the political shift.
However, Moody’s cautioned that maintaining fiscal consolidation could be challenging, potentially elevating credit risks in the near future. Some policies may be reprioritized as the new administration navigates these economic hurdles.
“We do not expect significant disruption to the country’s reform agenda or macroeconomic policies, which include the ongoing debt restructuring and structural adjustments under its program with the International Monetary Fund (IMF). However, some policies are likely to be reprioritised amid challenges in maintaining fiscal consolidation that could keep credit risks elevated for some time,” said Moody’s in an statement.
