Fitch Ratings has revised Sri Lanka’s sovereign rating outlook to “stable” from “negative” to reflect the country’s positive changes in sovereign credit fundamentals, states the Central Bank of Sri Lanka.

At the same time, the agency has affirmed the long-term foreign and local currency Issuer Default Ratings (IDRs) and the Country Ceiling at ‘B+‘, and the short–term IDR at ‘B’. The increase of foreign exchange reserves to USD 4.3 bn at the end of September 2009, which is a record high level and the expectation of the reserves exceeding USD 5 bn by end of the year, in Fitch’s view, is a substantial lift to the country’s external financial position.

The Standard & Poor's (S&P), the other sovereign rating agency, too had revised Sri Lanka’s sovereign rating outlook to “stable” from “negative” on 25 August 2009.