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Fitch downgrades Sri Lanka’s rating

December 5, 2018

COLOMBO, Sri Lanka (AP) — Fitch Ratings has downgraded Sri Lanka’s long-term foreign-currency issuer default rating, citing political upheaval that has resulted in the country having no functional government.

Fitch says it lowered the country’s rating to B from B plus with a stable outlook, reflecting heightened external financing risks, uncertain policy outlook and a slowdown in fiscal consolidation.

Sri Lanka is now without a government after a court ordered disputed Prime Minister Mahinda Rajapaksa and his ministers to refrain from conducting their duties as it hears a case challenging their eligibility to hold office after losing two no-confidence votes in Parliament.

The dispute arose after President Maithripala Sirisena sacked Ranil Wickremesinghe as prime minister and replaced him with Rajapaksa.

Rajapaksa has been unable to form a parliamentary majority.

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