StanChart sees SL’s rating outlook turning ‘positive’ this year

SAYS WHILE THE RATING ITSELF MIGHT REMAIN UNCHANGED IN 2026, THE SHIFT IN OUTLOOK IS A STRONG PROBABILITY

- NISHEL FERNANDO

Sri Lanka is likely to see its sovereign rating outlook upgraded from ‘Stable’ to ‘Positive’ later this year, setting the stage for a potential full credit rating upgrade in 2027 as the island nation continues to outperform key fiscal and debt targets set by the International Monetary Fund (IMF), Standard Chartered Bank said.

Speaking at a media briefing in Colombo, Standard Chartered Economist for South Asia, Saurav Anand noted that while the rating itself might remain unchanged in 2026, the shift in outlook is a strong probability. He indicated that if the country maintains its current fiscal trajectory, specifically bringing debt and interest metrics down to 2027 targets, a rating upgrade could follow in 2027.

“Our view is that we will see a change in rating outlook this year. It’s a strong probability that we might see the same rating but the outlook is changed from stable to positive this year,’ Anand told journalists in Colombo yesterday.