UNP claims Fitch Rating downgrade not due to pandemic

By Piyasena Dissanayake

The UNP yesterday said that the Fitch Rating agency’s downgrading Sri Lanka to a rank of CC indicated an increased probability of a default event in coming months in light of the country’s worsening external liquidity position and drop in foreign-exchange reserves.

Addressing the media at Sirikotha, UNP Chairman and former minister Wajira Abeywardena said that it could not accept the excuse given by the government that the downgrading was a consequence of the COVID-19 pandemic.

“During the same period, except for a few countries such as Sri Lanka, all other countries around the world have strengthened their dollar reserves. Therefore, it is not an excuse that could be accepted as the real cause for this problem. It is nothing but a failure to implement correct financial policies,” he said.

The UNP Chairman said that Fitch has downgraded Sri Lanka to ‘CC’ from ‘CCC’.

“We are facing the danger of an economic collapse,” Abeywardena said.