COLOMBO (News 1st); Standard & Poor’s (S&P) lowered long-term sovereign credit rating on Sri Lanka from ‘CCC+’ to ‘CCC’ on increasing external financing risks on Wednesday (12).

There is a rising probability of sovereign default scenarios playing out over the next 12 months in the absence of an unforeseen positive development, S&P in a statement said the outlook is negative.

At the same time, the rating agency affirmed ‘C’ short-term credit rating.

S&P said the country’s external position continues to weaken owing to elevated external obligations and uneven access to financing.