Global credit rating agency Moody’s has expressed optimism regarding the election of Anura Kumara Dissanayake as Sri Lanka’s new President, asserting that it will not disrupt the country’s reform agenda. Moody’s anticipates that the strong commitment to economic reforms, including ongoing debt restructuring and the IMF-supported program, will remain stable despite this political transition.
However, Moody’s also warned that maintaining fiscal consolidation could pose challenges, potentially increasing credit risks in the near term. As the new administration addresses these economic difficulties, certain policies may be reprioritized.
In a statement, Moody’s noted, “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 reprioritized amid challenges in maintaining fiscal consolidation that could keep credit risks elevated for some time.
