S&P Global Ratings has raised Sri Lanka’s long- and short-term foreign currency sovereign credit ratings from ‘SD/SD’ (selective default) to ‘CCC+/C’. 

The upgrade, announced on Friday(19), reflects the country's progress in its ongoing debt restructuring efforts and improving economic conditions.

The agency affirmed that its local currency ratings remain at ‘CCC+/C’ with a stable outlook. 

According to S&P, the stable outlook balances the country’s continued economic recovery and fiscal reform against its high debt and heavy interest burden.

The upgrade is a direct result of Sri Lanka's efforts to complete the restructuring of its remaining commercial debt, including government-guaranteed bonds from SriLankan Airlines.